Hovde Group upgrades FB Financial to 'outperform' following Southern States Bancshares deal

Southern States Bancshares

01/04/2025 14:03

** Hovde Group upgrades regional lender FB Financial FBK.N to "outperform" from "market perform" following announcement of $381 million deal to acquire community bank Southern States Bancshares SSBK.O

** Brokerage expects strong levers for better growth at FBK than peers and improvement in profitability going forward

** Says SSBK deal checks all the boxes, given anticipated EPS boost and cost savings as well as geographic expansion into targeted areas

     ** Hovde cuts PT by $1 to $59 due to less certain economic backdrop amid uncertainty over U.S. trade policy

** New PT represents 27.3% upside to stock's last close

** 3 of 6 brokerages rate the stock "buy" or higher and 3 "hold"; median PT $60 - data compiled by LSEG

** As of last close, FBK shares down 10% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))