First Republic Bank (FRC) Gets a Buy Rating from Maxim Group

By Carrie Williams

Maxim Group analyst Michael Diana reiterated a Buy rating on First Republic Bank (FRCResearch Report) yesterday and set a price target of $110. The company’s shares opened today at $93.53.

Diana observed:

“2Q19 results included record loan originations and excellent credit quality. The NIM was down 12bps linked-quarter, but NIM compression is expected to slow materially. Wealth management fees were down due to departure of an advisor group, but expenses should be down similarly. We are lowering our 2020 EPS estimate to $5.65, from $6.00, and lowering our price target to $110, from $115. Our new price target equates to 19.5x (vs. 19.2x for our previous price target) our new 2020 EPS estimate, which is inline with other best-in-class Smid-Cap Banks.”

According to, Diana is a 5-star analyst with an average return of 7.2% and a 58.4% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.

First Republic Bank has an analyst consensus of Moderate Buy, with a price target consensus of $98.25, representing a 5.0% upside. In a report released yesterday, Wedbush also maintained a Buy rating on the stock with a $103 price target.

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The company has a one-year high of $107.75 and a one-year low of $79.42. Currently, First Republic Bank has an average volume of 1.08M.

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First Republic Bank engages in the provision of private banking, business banking, real estate lending, and wealth management, including trust and custody services. It operates through the Commercial Banking and Wealth Management segments.