First Foundation (FFWM) PT Raised to $7 at Standard Chartered

Standard Chartered analyst Andrew Terrell raised the price target on First Foundation (NYSE: FFWM) to $7.00 (from $6.00) while maintaining a Inline rating.

The analyst comments "FFWM 2Q results included Op. EPS of $0.03, a beat to our and Street’s $0.01, albeit entirely on an LLP reversal as we peg operating PPNR at $0.3 mil. vs. our/Street's $2.5 mil./$1.7 mil. Much of 2Q's focus was naturally around the Company’s recently announced capital raise. Expectations were provided to reposition a portion of the multifamily portfolio, specifically 20% is anticipated to move to HFS in 3Q. Additionally, we would not be surprised to see builds in the reserve in the near term as the Company has initiated a comprehensive ACL methodology review. Longer term, focus remains on growing wealth management, shifting loan growth to more C&I business, diversifying geographically and improving core funding. A target of 0.90%-1.00% ROAA by 4Q26 was provided, although we suspect investor sentiment could remain challenging until greater line-of-sight to these targets is available. Remain EW, PT to $7 (from $6)."

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