12:35 PM EDT, 09/24/2024 (MT Newswires) -- First Citizens BancShares (FCNCA) faces pressure on net interest income growth on prospects of additional interest rate cuts by the Federal Reserve, Wedbush Securities said Tuesday in a report downgrading the bank.

First Citizens "is the most asset sensitive bank in our coverage," and a rate decline of 100 basis points "could lead to a 7.6% headwind" for net interest income, Wedbush said. The securities firm cut the bank's rating to neutral from outperform and removed the company from its list of best ideas.

Wedbush expects a reduction of 200 basis points in interest rates by the end of 2025, including the Fed's recent 50 basis point cut.

Wedbush lowered its estimate for the bank's core 2024 profit to $199 a share from $200 on lower average earning asset assumptions, kept the 2025 estimate at $195 and introduced a 2026 estimate of $220.

The First Citizens price target was cut by Wedbush to $2,150 from $2,450.

Shares of First Citizens fell 3.4% in recent trading Tuesday.

Price: 1889.04, Change: -66.85, Percent Change: -3.42