First Citizens initiated with a Market Perform at Raymond James

Raymond James analyst David Long initiated coverage of First Citizens BancShares with a Market Perform rating and no price target. The firm sees “several headwinds” that leave it more cautious in the near term, including elevated net interest margin compression, below-peer credit metrics, and continued runoff of the SVB balance sheet. While the Silicon Valley Bank transaction is the “deal of the century,” First Citizens is still dealing with loan and deposit run-off due to fundamental challenges facing the private market backdrop, the analyst tells investors in a research note.