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Investing.com - Piper Sandler raised its price target on First Business Financial (NASDAQ:FBIZ) to $58.00 from $55.00 on Tuesday, while maintaining an Overweight rating on the stock. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 8.7x, suggesting potential upside despite a recent 9% decline over the past week.
The research firm noted that First Business Financial delivered "solid" second-quarter results, despite shares underperforming recently. While pre-provision net revenue was 2% below expectations primarily due to softer SBA (LON:SBA) revenue, the bank posted stronger net interest income with continued robust balance sheet growth. The company maintains strong fundamentals with an 8.2% revenue growth and a 16% dividend increase over the last twelve months.
Piper Sandler highlighted that First Business Financial demonstrated high single-digit core deposit gathering and improved credit metrics, with net charge-offs reverting lower despite a slight rise in non-performing assets.
The firm trimmed its 2025 and 2026 operating earnings per share estimates by 1% and 5% respectively to $5.40 and $5.80, citing more conservative loan loss provision assumptions.
The new $58 price target represents a multiple of 10.0x Piper Sandler’s 2026 earnings estimate, which the firm noted is largely in-line with peers, reflecting First Business Financial’s "above average operating leverage and solid profitability outlooks" balanced against "less favorable funding mix optics."
In other recent news, First Business Financial Services reported its second-quarter earnings for 2025, exceeding analysts’ expectations with an earnings per share (EPS) of $1.35, slightly above the projected $1.33. However, the company reported revenue of $41.04 million, which was below the anticipated $41.55 million. DA Davidson has reiterated its Buy rating for First Business Financial, maintaining a price target of $57.00. The firm noted the company’s consistently strong loan growth and stable core net interest margin as positive factors in its decision. Additionally, DA Davidson highlighted First Business Financial’s effective cost control measures. These developments reflect the company’s ongoing financial performance and the confidence of some analysts in its future prospects.
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