First Citizens initiated with an Overweight at Atlantic Equities

Atlantic Equities analyst John Heagerty initiated coverage of First Citizens BancShares with an Overweight rating and $1,775 price target. The analyst sees “substantial” strategic and financial benefits from the acquisition of Silicon Valley Bank, including a doubling of tangible book value and adjusted earnings accretion of 80%-90%. Further earnings upside could come from enhanced capital management, “higher-for-longer” interest rates and additional expense synergies, potentially adding a further 20% to fiscal 2025 estimates, the analyst tells investors in a research note. It believes First Citizens shares are “substantially undervalued.”