Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?
The common comment is that the big banks don’t offer the same quality of service that SVB provides. The big banks don’t know the tech space well.
It kind of shows how different things are in the lending space, and why regional banks have unique advantages that might not be so easily replaced.
Conclusion
John Huber’s original thesis at US$1,500 for FCNCA was 3 engines:
- Modest earnings growth.
- Sizable share buybacks.
- Trading at a more reasonable PE of 12-14 times versus 7-8 times when he first wrote it.
I think 3 is off the table and if you are interested, it will depend on how you understand #1 and #2.
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