First Bank (FRBA) Stock Forecast & Price Target

First Bank is facing short-term challenges in terms of credit, net interest income, and expenses, leading to adjustments in EPS estimates. While the stock may consistently trade at a discount to peers due to inconsistent credit quality and funding reliant on higher cost sources, the current valuation presents an opportunity for investors as the stock trades at just 93% of TBVPS and 8x the 2027E EPS. However, without any major catalysts for outperformance, the stock may gravitate towards peer multiples.

First Bank is facing potential risks such as deteriorating credit quality and high expenses, resulting in a slow start to 2026 with minimal loan growth. This may lead to a negative impact on earnings growth and subsequently a decrease in the stock valuation. Additionally, the bank's heavy reliance on high-cost funding sources and lack of a significant catalyst for relative outperformance may continue to weigh on its performance.