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Wells Fargo Securities upgrades First Interstate BancSystem


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Wells Fargo Securities upgrades First Interstate BancSystem


* Wells Fargo Securities analyst Jared Shaw upgraded Billings, Mont.-based First Interstate BancSystem Inc. to "outperform" from "market perform," after a two-day roadshow with CEO Kevin Riley and CFO Marcy Mutch. He increased his price target to $42 from $39.

With its core loan growth getting back on track, Shaw expects the company's second quarter to be stronger than its first quarter.

He also expects the company to focus on integrating its recently completed acquisition of Cascade Bancorp. He projects the company's shares are at lower risk now that the deal has been completed.

That said, however, Shaw wrote that M&A transactions for the company are still important for future growth.


* Jared Shaw of Wells Fargo Securities also initiated coverage of Pittsburgh-based F.N.B. Corp. with an "outperform" rating and a $15.50 price target.

According to the analyst, the company had successfully used organic growth and M&A transactions to become a $30 billion-asset company.

With the company in the process of integrating its acquisition of Yadkin Financial Corp., Shaw wrote that the risks to its current trading situation have been limited, now that the deal is completed.

He expects the company to lie low in the M&A scene for now, as it focuses on its new opportunities from its Yadkin acquisition.

Notable reiteration

* FIG Partners analyst John Rodis reiterated his "market perform" rating of American Fork, Utah-based People's Utah Bancorp due to valuation. He increased his price target to $27.50 from $27.00.

Following the company's recent announcement that it will acquire Town & Country Bank Inc., its first-ever M&A deal after its initial public offering in June 2015, Rodis increased his 2018 EPS estimate by $0.08 to $1.53. He expects the deal to close in late September or early October. He wrote that the deal would enhance the company's position in St. George, Utah.

Rodis also noted that the company is still on the lookout for other strategic deals.