First Merchants Stock: A Deep Dive Into Analyst Perspectives (4 Ratings)

In the last three months, 4 analysts have published ratings on First Merchants FRME, offering a diverse range of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for First Merchants, revealing an average target of $50.75, a high estimate of $55.00, and a low estimate of $46.00. Witnessing a positive shift, the current average has risen by 4.64% from the previous average price target of $48.50.

Breaking Down Analyst Ratings: A Detailed Examination

The perception of First Merchants by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to First Merchants. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of First Merchants compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for First Merchants's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into First Merchants's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on First Merchants analyst ratings.

Discovering First Merchants: A Closer Look

First Merchants Corp, through its subsidiaries, provides its customers with financial services delivered locally by bankers. It offers personal banking, business banking, real estate mortgage lending, cash management services, brokerage, wealth management, and insurance. The company reports in only one segment which is community banking.

First Merchants: A Financial Overview

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Over the 3 months period, First Merchants showcased positive performance, achieving a revenue growth rate of 0.4% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: First Merchants's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 40.65% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): First Merchants's ROE stands out, surpassing industry averages. With an impressive ROE of 2.8%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): First Merchants's ROA stands out, surpassing industry averages. With an impressive ROA of 0.35%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: First Merchants's debt-to-equity ratio surpasses industry norms, standing at 0.4. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.