First Interstate Bancsystem, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Timur Braziler from Wells Fargo reiterated a Sell rating on the stock and has a $28.00 price target.
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Timur Braziler has given his Sell rating due to a combination of factors impacting First Interstate Bancsystem’s financial outlook. The company’s balance sheet is expected to continue shrinking through the end of the year, with aggressive assumptions about deposit betas for future rate cuts putting the fiscal year 2026 net interest income guidance at risk. Additionally, there is a significant credit tail risk due to a notable increase in criticized loans, which have risen substantially on both a quarterly and yearly basis.
Furthermore, the company’s net interest income is heavily reliant on management’s ability to maintain or replace a significant portion of loans that will reprice or mature in the next 18 months, a challenging task given the current loan growth trends. The management’s assumptions about deposit betas for future cuts are also considerably higher than historical results, adding further uncertainty. The ongoing business line divestitures and branch sales contribute to the shrinking balance sheet, and while the core balance sheet is nearing stabilization, the overall financial position remains weak, justifying the Sell rating.
Braziler covers the Financial sector, focusing on stocks such as Popular, Synovus, and Pinnacle Financial Partners. According to TipRanks, Braziler has an average return of 5.5% and a 54.60% success rate on recommended stocks.