Stephens analyst Gordon McGuire initiated First Interstate with an Overweight rating and a price target of $45. The analyst says that while the banking industry is heading for headwinds amid "looking credit concerns", he believes that investors will reward banks "with strong franchise value, conservative execution, and tail winds to improve profitability. McGuire adds that First Interstate BancSystem is trading at a discount relative to its close competitors in spite of its premium valuation relative to the industry, with an added upside catalyst coming from the eventual removal of its dual class voting structure.

"We executed well in the first quarter, with results generally in-line with our expectations, which we believe positions us well for the remainder of 2024," said Kevin P. Riley, President and Chief Executive Officer of First Interstate BancSystem, Inc. "With our strong financial performance, we expect to continue to generate improvements in our capital ratios and maintain a healthy dividend for our shareholders."