Is Southern First Bancshares, Inc. (NASDAQ:SFST) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Southern First Bancshares, Inc. at current levels.
A Carolinas commercial bank growing earnings 22% while trading at 9.4x forward, with the Sunbelt deposit migration still in early innings.
Where SFST is headed
Southern First is a $4.2 billion-asset Greenville-based commercial bank that spent the 2022-2024 rate cycle getting punished for the same reason it now looks interesting. Management ran a deposit base heavy on commercial relationships through a brutal funding squeeze, watched net interest margin compress to the low 2s, and refused to chase yield by stretching credit. The reward for that discipline is showing up now. Revenue grew 26% over the trailing twelve months, operating margin sits north of 40%, and forward earnings estimates point to another 22% year. At $58 the stock trades at 1.26x book and 9.4x forward earnings, which is what the market pays for a bank it thinks is fine, not one it thinks is winning.
Read the full Compass Direction on SFST
The complete destination call, the overlooked angle, milestones, and bull, base, and bear price scenarios (around $57.32).
See the full SFST analysisGet calls like this, free
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Frequently asked questions
Is Southern First Bancshares, Inc. (NASDAQ:SFST) a buy in 2026?
Yes, on balance. The Compass leans toward accumulating Southern First Bancshares, Inc. at current levels. A Carolinas commercial bank growing earnings 22% while trading at 9.4x forward, with the Sunbelt deposit migration still in early innings.
What is SFST's Compass Score?
Southern First Bancshares, Inc. scores 74/100 on Alexandria's Compass, placing it in the "Favorable" tier. Scores blend eight factors and update weekly.
What is the price target for SFST?
Alexandria's full Compass Direction includes bull, base, and bear price scenarios with the valuation math behind each. Read the full breakdown on the SFST page.
Compass verdicts are AI-generated, forward-looking editorial research from publicly available data, not investment advice or a recommendation regarding any security. Scores and verdicts update as the data changes.