Raymond James has raised its price target on First Bancorp (NASDAQ:FBNC) to $68.00, up from $62.00, and maintained a Strong Buy rating after the regional bank reported fourth-quarter results that the firm described as encouraging. The new target sits close to InvestingPro's Fair Value metric, which indicates the stock may be slightly undervalued given a market capitalization of $2.4 billion.
The bank's reported results outpaced expectations, supported primarily by stronger fee income and favorable credit trends. Management noted a reserve release associated with Hurricane Helene, which contributed to a lighter loss provision for the quarter. Over the last twelve months, First Bancorp produced diluted earnings per share of $2.68. Analysts' models referenced by the reporting indicate expectations for EPS to reach $4.59 in fiscal 2026.
First Bancorp completed a securities repositioning intended to bolster net interest margin in the near term. The bank already demonstrated NIM expansion, improving by 13 basis points quarter-over-quarter. Despite this margin improvement, net interest income for the period fell short of analyst expectations. At the same time, operating expenses exceeded projections, and management flagged a slightly tempered growth outlook. In response to these dynamics, Raymond James modestly lowered its EPS forecasts.
In explaining its decision to lift the price target and maintain a Strong Buy stance, Raymond James highlighted several company strengths: positive earnings momentum, a solid capital position and healthy credit metrics. The firm said these factors support a view that First Bancorp's shares are positioned to outperform peers and merit premium valuation multiples.
These fourth-quarter developments followed previously reported outperformance in the prior period. First Bancorp had posted stronger-than-expected third-quarter 2025 results, characterized by robust balance sheet growth and a materially higher net interest margin. That set of results prompted other broker actions: Piper Sandler upgraded the stock from Neutral to Overweight and set a price target of $58.00. Separately, earlier coverage from Raymond James upgraded the stock to Strong Buy with a $62.00 target, prior to this most recent change.
On the corporate governance and shareholder-return fronts, First Bancorp announced a quarterly cash dividend of $0.23 per share. The dividend is payable on January 25, 2026, to shareholders of record as of December 31, 2025. In addition, the bank said that G. Adam Currie, who became CEO in February 2025, has been appointed to the boards of directors of both First Bank and its parent, First Bancorp. Currie, a bank executive with the organization since 2015, brings leadership experience from previous roles at PNC Capital Markets and RBC Bank.
Taken together, the results, the securities repositioning and board-level developments shaped analyst reactions and updated price targets, while also influencing forward-looking EPS estimates. The bank's mix of stronger fee revenue and credit performance were central to the quarter's upside, even as the shortfall in net interest income and higher operating expenses tempered some forecast assumptions.
Investors and market participants will likely watch upcoming quarters for the sustained impact of the securities repositioning on net interest income as well as the trajectory of operating expenses and loan growth, which underpinned the modest adjustments to earnings forecasts by Raymond James.