Financial Institutions Faces Profitability Challenges Despite Strengths: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Stephens analyst Matt Breese initiated coverage on Financial Institutions, Inc. (NASDAQ:FISI) with an Equal Weight rating and a price target of $20. Despite the company's strengths such as diversified revenues and a steady NIM outlook, Breese is concerned about FISI's below-average profitability. He forecasts operating EPS of $2.94 for 2023 and 2024, and a 0.74% ROA in 2024. FISI shares are currently trading lower by 0.46% to $16.27.
July 13, 2023 | 6:51 pm
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Despite strengths such as diversified revenues and a steady NIM outlook, analyst Matt Breese is concerned about FISI's below-average profitability. He forecasts a 0.74% ROA in 2024, which is below the average of its peers.
The analyst's concerns about FISI's below-average profitability, despite its strengths, could negatively impact investor sentiment and put downward pressure on the stock price in the short term.
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