Brean Capital has begun formal coverage of BancFirst Corporation (NASDAQ: BANF), assigning a Hold rating and a price target of $123.00. At the time of the initiation the stock is trading at $119.61. The Oklahoma-based regional bank carries a market capitalization of $4.01 billion and is identified by InvestingPro Fair Value data as appearing undervalued.
Earnings and analyst assumptions
John Rodis of Brean Capital set adjusted earnings per share projections of $6.98 for fiscal 2026 and $7.01 for fiscal 2027. Those figures compare with current consensus estimates of roughly $7.02 for FY26 and $7.20 for FY27. For context, BancFirst’s diluted earnings per share for the last twelve months stand at $7.11.
Valuation framework
Brean’s $123 price target rests on two valuation anchors: a multiple of 17.6 times its FY26 EPS estimate and 250% of current tangible book value. Brean contrasts those assumptions with peer median metrics of about 11.3 times earnings and 168% of tangible book value. BancFirst itself is trading at a P/E ratio of 16.84 and at 2.26 times book value according to the cited data.
InvestingPro data also note a long-standing record of shareholder distributions: the company has increased its dividend for 28 consecutive years and the current cash yield stands at 1.63%.
Drivers cited by Brean
Brean Capital highlighted that BancFirst has historically commanded a premium valuation relative to its peers. The firm attributes that premium to the bank’s strong fundamentals and elevated insider ownership and expects those factors to sustain the premium over time. The initiation of coverage by Brean follows the firm’s acquisition of Janney Montgomery Scott’s Banking and Insurance capital markets teams on January 30.
Dividend and debt security payments
Separately, BancFirst disclosed a quarterly cash dividend of $0.49 per common share, payable on January 15, 2026 to shareholders of record on December 31, 2025. The company will also pay quarterly interest on $26.8 million of its 7.20% Junior Subordinated Debentures, which corresponds to a $0.45 per-share dividend on the trust preferred securities. That payment is scheduled for January 15, 2026 to holders of record as of December 31, 2025.
Sustainability disclosure
BancFirst released a Sustainability Report for November 2025 that outlines its environmental, social and governance efforts. The company says the report provides insight into sustainability topics it regards as material to its business operations and the communities it serves.
Investor takeaways
The initiation frames BancFirst as a regional bank trading close to Brean’s target, with EPS estimates slightly below consensus for the next two fiscal years and a long track record of dividend increases. The firm’s price target is driven by a premium multiple and a high tangible book multiple versus peers. Investors weighing the Hold rating may consider the company’s current payout profile and the stated rationale for a sustained valuation premium when positioning within the banking and broader financials sector.