UBS double upgrades First Citizens on SVB deal optimism, sets highest PT

First Citizens Bancshares (Tennessee)

05/04/2023 13:57

** UBS more than doubles PT on First Citizens BancShares Inc
 FCNCA.O  to $1,206 from $538, upgrades rating to "buy" from
"sell" on the stock  
    ** Cites co's acquisition of Silicon Valley Bank (SVB); says
addition to FCNCA's tangible book value per share due to the SVB
acquisition should be a positive catalyst
    ** In March, First Citizens acquired deposits and loans of
failed start up-focused lender Silicon Valley Bank for a $500
mln stock deal  urn:newsml:reuters.com:*:nL1N35Y0IP 
    ** UBS new PT implies upside of ~26% on FCNCA's last close; 
highest among five analysts 
    ** Co's balance sheet more well-positioned to handle a
potential recession going forward due to the low loss nature of
SVB's loan portfolio, which should result in a higher quality
earnings stream - brokerage 
    ** Four of five brokerages rate the stock "buy" or higher,
one "hold"; their median PT is $1,025 - Refinitiv 
    ** Up to last close, FCNCA has gained 26.1% YTD 
    
    
   

 (Reporting by Vansh Agarwal in Bengaluru)
 ((Vansh.Agarwal@thomsonreuters.com;))