In a report released yesterday, Michael Diana from Maxim Group reiterated a Buy rating on First Savings Financial Group (FSFG – Research Report), with a price target of $22.00.
Michael Diana has given his Buy rating due to a combination of factors, including the company’s recent financial performance and its valuation in comparison to its peers. First Savings Financial Group (FSFG) reported second quarter fiscal year 2024 earnings per share (EPS) that surpassed both the consensus estimate and Diana’s own projections, indicating robust deposit and loan growth. The core banking segment and the Small Business Administration (SBA) lending segment contributed significantly to the EPS, showcasing resilience and potential for future growth. Furthermore, FSFG’s credit quality remains strong, with a low provision for credit losses and minimal net charge-offs, suggesting a healthy financial position.
Additionally, Diana maintains confidence in the company’s future earnings, holding a stable earnings per share (EPS) estimate for the calendar year 2024. The bank’s shares are currently trading below the valuation range of top-tier small to mid-cap (Smid-cap) banks, offering an attractive entry point. With a price target set at $22, Diana anticipates a substantial stock price appreciation along with a promising dividend yield, potentially leading to a significant total return over the next twelve months. This combination of outperformance, valuation discount, and return potential underpins Diana’s optimistic outlook and justification for the Buy rating.
In another report released on April 26, Piper Sandler also assigned a Buy rating to the stock with a $21.00 price target.
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First Savings Financial Group (FSFG) Company Description:
First Savings Financial Group, Inc. operates as a savings and loans holding company for First Savings Bank FSB, a federally chartered savings bank. The firm operates as a community-oriented financial institution offering traditional financial services to consumers and businesses in its primary market area. It operates through the following segments: Core Banking, SBA Lending, and Mortgage Banking. The Core Banking segment engages in residential, commercial and consumer loans. The SBA Lending segment focuses on net gains on sales of loans and net interest income as its primary sources of revenue. The Mortgage Banking segment originates residential mortgage loans and sells it in the secondary market. The company was founded in May 2008 and is headquartered in Clarksville, IN.
