First Republic Bank FRC Stock Forecast 2023
First Republic Bank FRC Stock Forecast 2023: Read about the First Republic Price Target as well as the latest News from First Republic Bank
Latest FRC Stock Price
First Republic Bank, together with its subsidiaries, provides private banking, private business banking, and private wealth management services to clients in metropolitan areas in the United States. It operates in two segments, Commercial Banking, and Wealth Management. First Republic Bank was founded in 1985 and is headquartered in San Francisco, California.
With the failure of two American banks, Silicon Valley Bank and Signature Bank, as well as a downgrading by S&P, First Republic, the 14th largest bank in the nation, entered a state of crisis. Investors became concerned that First Republic’s stock may also collapse after its shares dropped more than 62 percent in the previous five days.
Performance of First Republic Bank Stock
- 1 M: -87.5%
- 6 M: -88.9%
- 12 M: -90.6%
FRC Stock Analyst Price Target
No new price targets have been released in the past few days. The latest price targets are as follows:
- NASDAQ: Based on analysts offering 12-month price targets for FRC in the last 3 months. The average price target is $130.62 with a high estimate of $185 and a low estimate of $5.
- CNN: The 18 analysts offering 12-month price forecasts for First Republic Bank have a median target of 136.00, with a high estimate of 162.00 and a low estimate of 5.00. The median estimate represents a +762.40% increase from the last price of 15.77.
- TipRanks: Based on 18 Wall Street analysts offering 12-month price targets for First Republic Bank in the last 3 months. The average price target is $130.62 with a high forecast of $185.00 and a low forecast of $5.00. The average price target represents a 762.18% change from the last price of $15.15.
First Republic Bank FRC Stock Forecast 2023: Recent Developments
The banks stated Thursday afternoon that a group of financial organizations had decided to deposit $30 billion in the First Republic as a show of support for the banking sector. According to a news statement from the banks, Goldman Sachs and Morgan Stanley will deposit roughly $2.5 billion, with contributions from Bank of America, Wells Fargo, Citigroup, and JPMorgan Chase totaling about $5 billion each. A total of $1 billion will be deposited by Truist, PNC, U.S. Bancorp, State Street, and Bank of New York Mellon.
In accordance with a statement from the First Republic, the deposits must remain in the bank for at least 120 days. With news regarding the progress of the deposit plan from CNBC’s David Faber and others, regional bank stocks rose on Thursday after initially falling.
After being temporarily suspended, First Republic Bank’s stock fell 17% in early trading on Friday as $30 billion in deposits from major US banks failed to allay investor concerns over the troubled institution.
On Thursday, key decision-makers including U.S. Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell, and JPMorgan CEO Jamie Dimon came to an extraordinary agreement due to concerns over the bank’s impending collapse.
First Republic Bank FRC Stock Forecast 2023: Fundamentals
Net Profits: First Republic Bank’s net profit fell -3.59% since last year’s same period to $386Mn in Q4 2022. On a quarterly growth basis, First Republic Bank has generated a -13.26% fall in its net profits in the last 3 months.
PE Ratio: First Republic Bank’s price-to-earnings ratio after these Q4 2022 earnings stand at 11.65.
EPS Estimate Current Quarter: First Republic Bank’s earnings per share (EPS) estimates for the current quarter stand at 1.81 – a -16.97% fall from last quarter’s estimates.
EPS Estimate Current Year: First Republic Bank’s earnings per share (EPS) estimates for the current year stand at 1.81.
Dividend Per Share (DPS): First Republic Bank declared a 0.27 dividend per share during the earnings announcement for Q4 2022.
Generally, in this industry, a return on equity in double digits is considered good. First Republic Bank’s return on equity (ROE) stands at 0.1.
FRC Stock Forecast 2023: Technical Analysis
The troubles for First Republic bank seem to pile up. On Wednesday, the US Central Bank raised the interest rate once again despite the US banks being under severe turmoil. After the interest rates were hiked, the banking stocks crashed. Adding to the trouble was the statement of the US Treasury Secretary, Janet Yellen who said that there was discussion on insurance for all bank deposits without approval from the U.S. Congress.
Things did not stop there, as the day went by, the credit rating firm, Fitch Ratings lowered First Republic Bank’s long-term issuer default rating to ‘B’ from ‘BB,’. This comes after Fitch had already slashed its ratings on the firm to junk. The latest rating marks First Republic Bank as costly and it said that First Republic’s balance sheet is not sustainable.
All these incidents combined led to the crash of FRC stock once again which was heading for a reversal. The First Republic Bank stock closed 15.47% lower on Wednesday.
Technically FRC stock is now once again highly bearish.
The stock price again faces the fear of crashing below $10. The 50-day Moving Average for FRC stock is $89.19 and the 200-day MA is $116.9. First Republic Bank stock is below both the averages and the stock is on a downtrend.
The support for FRC is around $13.20. For the investors, the task will be to keep the stock price above $10. The stock is technically oversold. The sellers are in control and the price will likely fall further on the next trading day.
On the daily chart, both the MACD indicator and Stochastic RSI indicate a bearish run for the MULN stock. The MACD indicator is on the downtrend and the volume bars have once again increased on the bearish axis. It is a sell signal.
The Stochastic RSI is within the oversold territory. The sellers have once again outnumbered the buyers.
- Moving Average: Bullish
- RSI: Oversold
- Stochastic RSI: Oversold
- MACD: Sell
Latest FRC Bank News
First Republic Bank’s Rating Downgraded
After the stocks of First Republic Bank crashed, S&P Global Inc cut the bank’s rating to junk. On Sunday, the rating firm further downgraded the rating of the bank. The firm lowered First Republic’s long-term issuer credit rating to B+ from BB+.
First Republic Bank FRC Stock Forecast 2023: Macros
The US commercial banking market may be divided into segments using the offered goods and services. Depositary Services, Other Non-Interest Income Generating Products, Lending Services, such as Commercial and Industrial Loans, Residential, Agricultural, and Real Estate Loans, Individual Loans Excluding Credit Cards and Credit Card Loans, and Other Services are the categories under which lending services fall. Investors’ pessimistic prognosis for the US banking industry suggests that they anticipate slower long-term growth rates than in the past.
The industry is presently trading at a PE ratio of 9.9x, which is lower than its three-year average PE of 12.2x. The United States was the first to adopt blockchain technology in the banking and finance industries. Also, the country’s utilization of open banking is progressively expanding. The possibility exists for Open Banking to change the future competitive environment. Banks that make an investment in their skills will be in a good position to keep their position as strong brands that interact with consumers.
Businesses in the financial and banking markets are facing some significant economic challenges as 2023 begins. Banks must lead transformation initiatives that enable them to compete for a share of “new-age banking,” conducted as digital-first, embedded finance, marketplace banking, and BaaS, among others, in order to keep up with change and ensure that their organizations remain relevant, undisturbed, and ahead of competitors.
First Republic Bank FRC Stock Forecast 2023: Analysts’ Price Targets
- First Republic Bank (FRC) was downgraded by Wedbush analysts, who put a $5 price target on the stock.
- Stephens & Co.: $140
- Compass Point: $130
- Consolidated: Based on 18 Wall Street analysts offering 12 month price targets for First Republic Bank in the last 3 months. The average price target is $128.21 with a high forecast of $185.00 and a low forecast of $5.00. The average price target represents a 401.60% change from the last price of $25.56.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.
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