First Citizens (FCNCA): Balancing Growth Potential with Industry Challenges

Core Viewpoint - First Citizens BancShares, Inc. (NASDAQ:FCNCA) is considered a strong long-term investment by hedge funds, despite recent price target reductions by analysts following the company's Q4 financial results [1][4]. Group 1: Financial Performance and Analyst Reactions - Following the Q4 earnings report, First Citizens' shares fell approximately 8.5%, contrasting with a 2.2% decline in the broader banking index, attributed to concerns over the bank's 2026 outlook, particularly regarding net interest margin and operating expenses [2]. - Raymond James analyst David Long revised the 2026 EPS estimate down by $7.86 to $182.96 and the 2027 EPS estimate down by $7.98 to $213.30, citing factors such as a smaller projected balance sheet and tighter net interest margins [3]. - TD Cowen also lowered its price target for First Citizens from $2,600 to $2,500 while maintaining a Buy rating, noting that core earnings per share exceeded expectations but pre-tax pre-provision income was disappointing [4]. Group 2: Company Overview - First Citizens BancShares, Inc. is a North Carolina-based financial holding company that operates through First Citizens Bank, providing a range of retail and commercial banking services, including lending, deposits, wealth management, and treasury solutions [5].