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First Mid Bancshares Analyst Ratings Signal Mixed Outlook

Analysts express mixed views on First Mid Bancshares, with some bullish and others bearish sentiments. With a current revenue growth rate of 9.69%, the company faces challenges in profitability and return metrics.

Date: 
AI Rating:   5

Mixed Analyst Sentiments: Recent ratings released by five analysts for First Mid Bancshares show a variety of perspectives, with no bullish ratings but a total of two somewhat bullish and three indifferent ratings over the past month. The variety in ratings indicates a divergence in analyst confidence regarding the company’s future performance.

12-Month Price Targets: Analysts have set an average 12-month price target of $45.00, with forecasts ranging from $43.00 to $47.00. This increase from a previous average price target reflects improved expectations amid recent company performance.

Revenue Growth: According to the report, First Mid Bancshares has achieved a notable revenue growth of 9.69% as of September 30, 2024. While this signifies a positive trend in top-line earnings, it is worth noting that the growth rate falls short of its industry peers.

Net Margin and Profitability Concerns: The company’s net margin at 24.76% is reported to be below industry standards, which suggests challenges in achieving strong profitability. This low margin indicates potential cost control issues that may hinder financial performance.

Return on Equity (ROE): First Mid Bancshares has an ROE of only 2.33%, which lags behind industry averages. This suggests that the company may struggle to maximize returns on equity capital, an important metric for investors assessing financial efficiency.

Debt Management: On a positive note, the company maintains a debt-to-equity ratio of 0.43, which is lower than the industry average. This indicates a more balanced approach to financing with less reliance on debt, which could be seen as a positive sign for investors.

Stocks:  FMBH