Raymond James has revised its price target for First Business Financial (FBIZ, Financial), reducing it from $62 to $59 while maintaining an Outperform rating. The decision reflects the company's robust performance in the first quarter. Despite the adjustment, the fundamental aspects remain strong, highlighted by a consistent core net interest margin.
The company's core deposit growth has shown impressive strength, surpassing loan growth, indicating continued momentum with minimal signs of deceleration. The evaluation by Raymond James suggests a positive outlook for FBIZ, underpinned by these foundational metrics.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for First Business Financial Services Inc (FBIZ, Financial) is $59.60 with a high estimate of $62.00 and a low estimate of $57.00. The average target implies an upside of 24.45% from the current price of $47.89. More detailed estimate data can be found on the First Business Financial Services Inc (FBIZ) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, First Business Financial Services Inc's (FBIZ, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for First Business Financial Services Inc (FBIZ, Financial) in one year is $48.53, suggesting a upside of 1.34% from the current price of $47.89. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the First Business Financial Services Inc (FBIZ) Summary page.
FBIZ Key Business Developments
Release Date: January 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- First Business Financial Services Inc (FBIZ, Financial) reported record earnings, with a 15% increase from the third quarter and a 24% increase from Q4 2023.
- The company achieved strong loan growth, with loan balances increasing by 10% year-over-year.
- Total deposits grew by 11% from the previous year's fourth quarter, indicating strong deposit growth.
- The efficiency ratio improved to its lowest level since Q4 2013, showcasing operational efficiency.
- FBIZ's net promoter score of 70 is nearly three times the banking industry average, reflecting strong client satisfaction.
Negative Points
- There was a tick-up in non-performing assets (NPAs), which the company attributes to normalization from unusually low levels in recent years.
- The transportation sector within the equipment finance portfolio continues to show isolated weakness.
- A $16.9 million loan to a borrower in the equipment wholesale business was moved to non-performing status during the quarter.
- The company experienced a modest uptick in accruing past due loans due to a delayed payment from one client.
- Swap fee income and returns on SBIC funds are expected to continue experiencing variability.
