First Business Financial price target raised to $58 from $55 at Piper Sandler

Piper Sandler analyst Nathan Race raised the firm’s price target on First Business Financial (FBIZ) to $58 from $55 and keeps an Overweight rating on the shares. The firm believes First Business Financial generated a solid Q2 and was surprised to see shares underperform recently. While PPNR was 2% light primarily on softer SBA revenue, First Business Financial posted stronger net interest income with continued robust high-single-digit balance sheet growth, including high-single-digit core deposit gathering. Piper believes First Business Financial is well-positioned for price to earnings expansion closer to peers via strong operating leverage that is aided by its more durable net interest margin outlook, which should also support continued superior TBV growth.