First Business Financial upgraded to Buy from Neutral at DA Davidson

DA Davidson analyst Jeff Rulis upgraded First Business Financial to Buy from Neutral with a price target of $50, up from $36. The firm cites the bank’s ability to produce sustainable, above peer loan growth and a return on tangible common equity near 15% for the upgrade. First Business has eschewed the traditional school of thought that wholesale deposits cannot be a reliable source of partial funding, the analyst tells investors in a research note. Da says “proof of concept has been achieved” and has confidence the bank “is not only surviving but thriving.” It believes the stock is positioned to outperform.