Citi analysts increased their price target for First Citizens BancShares (NASDAQ:FCNCA) from $2,100 to $2,350 while maintaining a Neutral rating. The adjustment reflects revised cost of equity assumptions and a tempered outlook following the stock’s strong year-to-date performance.

Bank stock valuations have shifted from broadly attractive to more balanced over the past six months, supported by favorable election outcomes and growing optimism around a potential soft economic landing. The analysts adjusted their valuation model to align with early-cycle sentiment driving peak multiples in the near term. This update led to the higher price target for FCNCA.

First Citizens has been one of the top-performing bank stocks in 2023, even as consensus estimates for 2025 EPS have declined by 19% year-to-date. However, its recent outperformance and premium valuation relative to regional peers, with an implied cost of equity of 9.7%, limit near-term upside. While long-term prospects remain solid, Citi opted to stay on the sidelines for now, reflecting a more balanced risk-reward profile.