UPDATE: FIG Partners Initiates First Business Financial Services with Outperform, $29 PT on Upside Potential

FIG Partners initiates its coverage on First Business Financial Services (NASDAQ: FBIZ) with an Outperform rating and a price target of $29.

FIG Partners says, "Presumably much of the current discount valuation reflects (1) the sub 6% level of tangible common equity and concern of a near term capital raise below tangible book value and (2) the elevated level of wholesale funding vis a vis peer. In our view, neither of these issues should be an impediment to investors owning shares of FBIZ. Notably, we do not foresee a near term capital raise for credit impairment purposes, nor do we see wholesale funding, which is declining in relative importance and is a good complement to FBIZ's business model, as a negative."

FBIZ closed at $22.70 on Monday.

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