Piper Sandler initiated coverage of First Financial Bankshares Inc. (NASDAQ: FFIN) with a neutral rating and a $35 price target, citing a valuation premium that remains below recent historical levels.
The firm projected 2026 earnings at $2.05 per share and 2027 earnings at $2.10 per share, with a 17x multiple applied to the latter to derive the target. This represents a premium of roughly four times the bank’s peers, though Piper Sandler noted the valuation remains lower than historical peaks. The stock currently trades at a P/E ratio of 17.92.
Benchmark reiterated its buy rating and $39 price target for First Financial Bankshares, maintaining a more bullish stance than Piper Sandler’s initiation.
First Financial Bankshares reported second-quarter earnings of $71.89 million, a 7.8% increase year-over-year, with earnings per share matching analyst expectations at $0.50. Net interest income rose to $136.91 million from $123.73 million a year earlier, supported by a net interest margin improvement to 3.90% from 3.81%, driven by lower deposit costs and higher securities yields.
InvestingPro data shows the company maintains a 2.61% dividend yield, with 15 consecutive years of dividend increases and 34 years of uninterrupted payments. Piper Sandler highlighted the bank’s profitability, describing it as one of the most profitable in the U.S., and noted that faster-than-expected loan growth or strategic mergers and acquisitions could provide upside potential.
