First Merchants

FRME · NASDAQ

$40.11+$0.73 (+1.85%)TodayMarket closed · Oct 20, 4:04 PM ET

Prev close $39.38

FRME analyst rating

BuyConsensus of 2 analysts over the last 12 months. 100% rate it a buy.

Strong buy0
Buy2
Hold0
Underperform0
Sell0

12-month price target · 8 analysts

Average $47.62 (+18.7% upside)

Low: $39.49
Now: $40.11
High: $53.55

Upgrades and downgrades

The latest rating actions, newest first

FRME analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Raymond James	Oct 6, 2026	Upgrade	Market Perform → Outperform	$46.00	54%
Piper Sandler	Oct 5, 2026	Maintains	Overweight	$51.00 → $46.00	72%
Piper Sandler	Jun 26, 2026	Maintains	Overweight	$49.00 → $51.00	72%
Piper Sandler	Feb 4, 2026	Maintains	Overweight	$46.00 → $49.00	72%
Piper Sandler	Oct 27, 2025	Maintains	Overweight	$48.00 → $46.00	72%

The case for and against

Updated Apr 17, 2026

Bull case

First Merchants Corp demonstrated a robust financial position with strengthened regulatory capital ratios, reporting a CET1 of 11.7%, tier-1 capital of 11.9%, and total risk-based capital (TRBC) of 13.4%. The company experienced a 6% increase in average loans and a 9% growth in end-of-period loans held for investment, reflecting strong demand for its banking services. Additionally, First Merchants is poised for further growth in its core fee businesses due to recent technology upgrades and selective hiring, which is expected to enhance its competitive advantage in the community banking segment.

Bear case

First Merchants Corp's financial outlook appears negative due to core fee income falling slightly short of expectations, primarily driven by lower mortgage gains on sale revenue, which could impact overall profitability. The company's allowance for credit losses (ACL) is projected to remain above those of its peers, raising concerns about credit quality management amidst a potential economic slowdown, as it declines only moderately over the next few years. Additionally, the anticipated pressure on net interest margin (NIM) due to a high proportion of floating-rate loans and increasing competition for deposit pricing suggests challenges in maintaining profitability moving forward.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.