Critical Insights From First BanCorp Analyst Ratings: What You Need To Know

Analysts' ratings for First BanCorp FBP over the last quarter vary from bullish to bearish, as provided by 4 analysts.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated First BanCorp and provided 12-month price targets. The average target is $20.5, accompanied by a high estimate of $22.00 and a low estimate of $19.00. This current average reflects an increase of 10.81% from the previous average price target of $18.50.

Decoding Analyst Ratings: A Detailed Look

The standing of First BanCorp among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to First BanCorp. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of First BanCorp compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for First BanCorp's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of First BanCorp's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on First BanCorp analyst ratings.

Delving into First BanCorp's Background

First BanCorp is a financial holding company. The company's operating segment includes Commercial and Corporate Banking; Mortgage Banking; Consumer (Retail) Banking; Treasury and Investments; United States Operations; and Virgin Islands Operations. It generates maximum revenue from the Consumer (Retail) Banking segment. The Consumer (Retail) Banking segment generates majority revenue, which consists of the Corporation's consumer lending and deposit-taking activities conducted mainly through its branch network and loan centres. Geographically, it derives a majority of revenue from Puerto Rico.

Understanding the Numbers: First BanCorp's Finances

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, First BanCorp faced challenges, resulting in a decline of approximately -0.7% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: First BanCorp's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 33.32%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): First BanCorp's ROE excels beyond industry benchmarks, reaching 5.1%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.4%, the company showcases effective utilization of assets.

Debt Management: First BanCorp's debt-to-equity ratio is below the industry average at 0.44, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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