Deep Dive Into First Merchants Stock: Analyst Perspectives (6 Ratings)

Across the recent three months, 6 analysts have shared their insights on First Merchants FRME, expressing a variety of opinions spanning from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated First Merchants and provided 12-month price targets. The average target is $50.17, accompanied by a high estimate of $55.00 and a low estimate of $46.00. No alteration is observed as the current average remains at the previous average price target.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of First Merchants 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.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|-----------------------|---------------|---------------|--------------------|--------------------| |Nathan Race |Piper Sandler |Lowers |Overweight | $49.00|$55.00 | |Damon Delmonte |Keefe, Bruyette & Woods|Lowers |Outperform | $49.00|$52.00 | |Daniel Tamayo |Raymond James |Lowers |Outperform | $46.00|$50.00 | |Damon Delmonte |Keefe, Bruyette & Woods|Raises |Outperform | $52.00|$50.00 | |Daniel Tamayo |Raymond James |Raises |Outperform | $50.00|$42.00 | |Nathan Race |Piper Sandler |Raises |Overweight | $55.00|$52.00 |

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to First Merchants. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of First Merchants compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of First Merchants's stock. This analysis reveals shifts in analysts' expectations over time.

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

Stay up to date on First Merchants analyst ratings.

Delving into First Merchants's Background

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's Economic Impact: An Analysis

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.

Positive Revenue Trend: Examining First Merchants's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.03% as of 31 March, 2025, showcasing a substantial increase in 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 is impressive, surpassing industry averages. With a net margin of 34.23%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): First Merchants's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.39%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): First Merchants's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.3%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 0.45, First Merchants faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance 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.