
First Merchants (FRME) Stock Forecast & Price Target
First Merchants (FRME) Analyst Ratings
Bulls say
First Merchants Corp is positioned for growth through the diversification of its lending portfolio, which includes verticals such as Triple-Net-Lease Finance, First Lien HELOC, and SBA lending, offering incremental opportunities for expansion. The company is also expecting significant cost savings of approximately 28% on non-interest expenses, with most savings realized by the end of 2026, enhancing operational efficiency. Additionally, the anticipated participation in M&A activities in the Midwest, particularly in the Louisville market, reflects a strategic geographic fit that could positively impact future earnings per share.
Bears say
First Merchants Corp faces significant financial risks that contribute to a negative outlook on its stock, primarily driven by the volatility of the yield curve, which can adversely affect profitability. Additionally, there exists a risk of overpaying for acquisitions, potentially leading to ineffective integrations and a reduction in pro forma tangible book value. Furthermore, a deterioration in loan credit quality could trigger increased provisions for loan losses, posing a serious risk to future earnings estimates and overall stock performance.
This aggregate rating is based on analysts' research of First Merchants and is not a guaranteed prediction by Public.com or investment advice.
First Merchants (FRME) Analyst Forecast & Price Prediction
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