First Business Financial stock rating reiterated at Buy by DA Davidson

Investing.com - DA Davidson has reiterated its Buy rating on First Business Financial (NASDAQ:FBIZ) with a price target of $57.00. The stock, currently trading at $49.19, aligns closely with InvestingPro’s Fair Value assessment, suggesting balanced valuation at current levels.

The firm cited First Business Financial’s consistently strong loan growth and stable core net interest margin (NIM) as positive factors supporting the rating decision. DA Davidson also highlighted good cost control demonstrated by the company. The bank’s strong fundamentals are reflected in its 21-year track record of maintaining dividends, with 12 consecutive years of dividend increases and a current yield of 2.4%.

The research note acknowledged some challenges, including lighter-than-expected non-interest income with variability across fee income sources. The firm also observed greater credit quality fluctuations compared to previous quarters.

Despite these concerns, DA Davidson expressed confidence that the positive elements of First Business Financial’s performance are more likely to continue, while the negative factors are expected to moderate over time.

The $57.00 price target remains unchanged from DA Davidson’s previous valuation of the stock.

In other recent news, First Business Financial Services reported its second-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.35, compared to the forecast of $1.33. However, the company did not meet revenue expectations, reporting $41.04 million against the anticipated $41.55 million. These developments are noteworthy for investors as earnings and revenue are critical indicators of a company’s financial health. The earnings beat suggests stronger profitability, while the revenue miss may raise questions about growth. Analysts and investors will be closely watching how First Business Financial Services addresses these mixed results in future quarters. Additionally, the company’s stock experienced fluctuations following the earnings announcement, though specific stock price movements are not discussed here. These recent developments provide valuable insights into the company’s current performance and market perception.

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