First Citizens Bancshares Positioned for Success Post-Elections, Analyst Says

First Citizens Bancshares Inc (NASDAQ: FCNCA) has seen its shares rise over 50% this year, signaling strong market performance.

According to Deutsche Bank, this financial institution is identified as one of the "biggest potential winners" in the aftermath of the upcoming U.S. presidential elections.

Analyst Bernard von-Gizycki has recently started coverage of First Citizens Bancshares, issuing a Buy rating along with a price target set at $2,600.

The Case for First Citizens Bancshares

Von-Gizycki emphasizes that First Citizens has established itself as a "serial acquirer." This strategy positions the bank to capitalize on a pro-growth, pro-business climate anticipated after the elections, which could result in an increase in mergers and acquisitions in the banking sector.

Five Key Reasons for Optimism

1. The company is likely to benefit from a more favorable economic backdrop beginning in 2025, which should support deregulation efforts.
2. It is well-prepared to take advantage of increased activity in capital markets, which could lead to growth in loans within the SVB Commercial segment.
3. Strong capital levels are in place, allowing for share repurchases, thus enhancing shareholder value.
4. There is potential for higher net interest income than currently estimated, considering the company's asset sensitivity and expectations of reduced rate cuts.
5. First Citizens maintains balance sheet flexibility, enabling it to effectively navigate varying interest rate environments.

Current Price Performance: As of Monday, shares of First Citizens Bancshares are trading at $2,191.54, reflecting a slight decrease of 0.23% at the time of this report.

FirstCitizens, Elections, Analyst