First Bancorp upgraded to Buy at DA Davidson on valuation, defensive profile

As previously reported, DA Davidson upgraded First Bancorp to Buy from Neutral with a price target of $34, down from $36.50. The bank screens favorably on several defensive characteristics, including funding costs/composition, liquidity, and capital, while its credit quality also “remains pristine” and the net interest margin outlook is for a diminished pace of pressure in Q3 before stabilization in Q4 and expansion thereafter, the analyst tells investors in a research note. The stock has historically traded at a healthy valuation premium, but a recent pullback implies an attractive entry point for a high-quality bank, the firm added.