First American Financial (FAF) PT Lowered to $66 at Stephens

Stephens analyst John Campbell lowered the price target on First American Financial (NYSE: FAF) to $66.00 (from $72.00) while maintaining a Overweight rating.

The analyst commented: "In the quarter following FAF's disruptive cybersecurity event, the Company was able to effectively get the core Title business back on track, but a shortfall in high margin investment income/some moving parts relating to its internal bank deposits resulted in another quarterly miss for 1Q24. The good news is that FAF's underlying Title results exthe investment income would have topped our above-consensus mark, but the bad news is that: 1) the investment income from here takes a step down on a base case and 2) some questions arise as to how much of an impact (could it go lower?) it could be moving forward. While there are now some unknowns in what is typically a very straightforward story, we would argue that it is accounted for in current valuation (~10x forward EPS). We reiterate our OW rating and our PT moves to $66 (implies 12.5x forward EPS) from $72 PT."

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