First Interstate BancSystem (NASDAQ:FIBK) faces challenges in balance sheet optimization as loan production falls below expectations.
The Montana-based company's assets are shrinking. Analysts have lowered earnings forecasts. Management prioritizes share buybacks.
FIBK's P/E ratio is 11.57, PEG ratio 0.24, suggesting undervaluation. Market cap stands at $3.45 billion, share price at $35.49.
Analysts cut first fiscal year EPS estimate from $2.62 to $2.56. Second year estimate rose from $2.85 to $3.05.
The company has paid dividends for 17 consecutive years. Current dividend yield is 5.3%. Management accelerated share repurchases.
The industry outlook for mid-cap banks remains positive, providing a favorable backdrop for FIBK.
Barclays Capital confirmed a price target of $36 with an Equal Weight rating.
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