First Citizens Set For Growth With Over $200B In Assets, Says Bullish Analyst

Shares of First Citizens BancShares Inc (Delaware) FCNCA were climbing on Thursday.

The company has grown by 400% over the last 18 months, with the acquisitions of CIT Group and the failed Silicon Valley Bank, according to Wedbush.

The First Citizens BancShares Analyst: David Chiaverini initiated coverage of First Citizens BancShares with an Outperform rating and a price target of $1,700.

The First Citizens BancShares Thesis: The company is strongly positioned to benefit from its recent acquisitions, “particularly when the innovation economy stabilizes, and should generate solid growth as a result of its increased scale with now over $200 billion in assets,” Chiaverini said in the initiation note.

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“We expect the VC business to continue to be under pressure over the next few quarters, but we believe SVB's discounted price built in a sufficient margin of error that may lead to volatile results as the VC market recalibration stabilizes,” the analyst wrote.

Apart from accretion benefits from the integration of CIT Group and SVB, the company has a "solid capital base, a healthy legacy community banking business, and strong credit quality," he added.

FCNCA Price Action: Shares of First Citizens BancShares had risen by 1.10% to $1,345.66 at the time of publication Thursday.

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