Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

First Financial shares target cut by KBW on earnings miss

EditorEmilio Ghigini
Published 2024-05-01, 08:57 a/m
THFF
-

On Wednesday, Keefe, Bruyette & Woods adjusted its price target on First Financial Corp. (NASDAQ: THFF) shares, decreasing it to $43.00 from the previous $45.00. The firm maintained a Market Perform rating on the stock.

The revision follows First Financial's reported operating earnings of $0.95 per share, which did not meet the analysts' expectations. The company's performance was impacted by a combination of factors, including a decrease in net interest income (NII) as the net interest margin (NIM) declined by 10 basis points, lower fees, and expenses that were in line with predictions.

The firm noted that while loan growth was modest at 3% on a linked-quarter annualized (LQA) basis and credit trends remained steady, these factors contributed to a reduced provision for loan losses. However, the benefits were insufficient to counterbalance the softer pre-provision net revenue (PPNR).

Looking forward, the analysts at Keefe, Bruyette & Woods have expressed concerns over the lower starting point for NIM, which is anticipated to have a negative impact on the NII outlook for First Financial.

Additionally, the expected closure of First Financial's deal to acquire SimplyBank has been delayed, now projected to occur at the beginning of the third quarter of 2024 instead of the second quarter as previously anticipated. This delay is likely to postpone the anticipated benefits to First Financial's earnings per share (EPS).

As a result of these factors, Keefe, Bruyette & Woods has lowered its earnings estimates for First Financial for the years 2024 and 2025 by 10% and 3%, respectively. The Market Perform rating reaffirms the firm's neutral stance on the stock's anticipated performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.