Keefe Analyst Lifts First Business Financial Target to $60

Published 03/02/2025, 14:28
Keefe Analyst Lifts First Business Financial Target to $60

On Monday, Keefe, Bruyette & Woods, a financial services specialist, adjusted their outlook on First Business Financial Services (NASDAQ:FBIZ), increasing the price target to $60 from $58, while maintaining an Outperform rating on the company’s stock. The adjustment follows a period of strong performance by the company, with recent earnings surpassing expectations.

First Business Financial Services reported earnings per share (EPS) of $1.43, which exceeded the projected figures due to higher than anticipated revenues. This boost in revenue managed to counterbalance an increase in provisions. The company’s core margin remained unchanged from the previous quarter, and the net interest margin (NIM) saw benefits from elevated fee income as opposed to interest income. This contributed to a top-line beat. With a market capitalization of $428.46 million and revenue growth of 6.57% in the last twelve months, the company has demonstrated solid operational execution. InvestingPro subscribers have access to 10+ additional key metrics and insights about FBIZ’s financial health.

The firm’s performance was further strengthened by substantial gains from Small Business Administration (SBA (LON:SBA)) loan sales, which propelled fee income upward. Keefe, Bruyette & Woods analyst DelMonte expressed optimism about the company’s direction, citing a stable core margin and an aim for a 10% loan growth. The analyst also anticipates ongoing growth in fee income, which is expected to more than make up for the expenses associated with business investments.

In light of these factors, the analyst has revised the earnings estimates for First Business Financial Services for the years 2025 and 2026, increasing them by 2% and 4% respectively. The positive adjustments to the forecasts and the raised price target reflect confidence in the company’s ability to maintain its strong performance.

First Business Financial Services, with this revised price target and sustained Outperform rating, is positioned favorably by Keefe, Bruyette & Woods as it continues to execute its business strategy effectively. The firm’s stock is anticipated to reflect the ongoing operational success and strategic growth initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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