Monday, June 13, 2011

First Financial Bankshares Inc. (NASDAQ: FFIN) Q3 2011 Price Target

Recent price: 32.41$
P/E Ratio: 18.30
3 Months Target Price: 36$

Company Description
According to Reuters, First Financial Bankshares, Inc. is a financial holding company. Through its wholly owned subsidiary, First Financial Bankshares of Delaware, Inc., it owns 11banks, a trust company, a technology operating company, and an insurance agency. As of February 24, 2011, these subsidiaries were First Financial Bank, National Association, Abilene, Texas; First Financial Bank, Hereford, Texas; First Financial Bank, National Association, Sweetwater, Texas;; First Financial Bank, National Association, Eastland, Texas; First Financial Bank, National Association, Cleburne, Texas, and First Financial Bank, National Association, Stephenville, Texas. Through its subsidiary banks, it conducts a full-service commercial banking business. Its service centers are located in North Central and West Texas. As of December 31, 2010, it had 52 financial centers

Confidence Margins
Strong resistance $37.14 (+15%)
Light resistance $35.50 (+10%)
Light support $32.00 (-1%)
Strong support $30.67 (-5%)

This financial holding company has been under pressure as the broad market took a dip. First Financial Bankshares still has some value left and will reward it's investors over the coming weeks.

Entry strategy
For the cautious investor:
Buy the stock for 33$ or less.

For the risk-taking trader:
As the company has no publicly traded option contracts, the use of leverage might be the way to get some excess return on this position.

Exit Strategy
For the cautious investor:
Sell when the stock reaches 36$, or keep it until 37$ if you are more bullish in your own analysis.

For the risk-taking trader:
Same strategy as for the cautious investor.

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