MADISON, Wis., Sept. 24, 2012 (GLOBE NEWSWIRE) -- First Business Financial Services, Inc. (Nasdaq:FBIZ) is pleased to announce Raymond James has initiated research coverage on the FBIZ stock.
"Raymond James is one of the nation's leading investment firms with extensive research capabilities and over 6,000 financial advisors. As a result, we feel this is a very significant step in raising awareness of First Business and our success among investors across the country," stated Corey Chambas, President & CEO of First Business Financial Services, Inc.
Raymond James' summary recommendation includes:
Initiating Coverage with an Outperform Rating
Recommendation: We are initiating coverage on First Business Financial Services, Inc. with an Outperform rating and a $29 per share target price. Overall, the company has done a sound job of navigating through the current credit cycle as it has maintained profitability while keeping asset quality issues well corralled, building capital levels, and shifting its deposit mix away from a wholesale-dependent model to a more market-focused, relationship-based model. Although a challenging economic environment has kept loan growth at bay in the past three years, recent talent additions as well as expansion efforts into higher growth markets of Milwaukee and northeastern Wisconsin bode well for prudent loan growth going forward. When coupled with an enhanced NIM outlook (due to an improved funding mix) and declining credit costs, we think the company is well positioned to see a pickup in earnings power, tangible common equity levels, and tangible book value per share going forward. Overall, we think shares of FBIZ are attractively valued on an absolute basis and view current price levels as a unique opportunity for investors with both a short-term and long-term perspective to build a position in a high quality franchise with good long-term growth potential. However, patience will be required to do so as shares are thinly traded with a one-year average daily trading volume of 2,700 shares.
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About Raymond James
Founded in 1962 and a public company since 1983, Raymond James is a diversified financial services holding company with subsidiaries engaged primarily in investment and financial planning, in addition to investment banking and asset management. Our stock is traded on the New York Stock Exchange (RJF).
Through its four broker/dealer subsidiaries, Raymond James Financial has more than 6,000 financial advisors serving over 2 million accounts in more than 2,500 locations throughout the United States, Canada and overseas. In addition, total client assets exceed $370 billion, of which approximately $40 billion are managed by the firm's asset management subsidiaries.
About Raymond James Equity Research
Raymond James' equity research is a cornerstone of the organization. Raymond James and its affiliates in Canada, Europe, and Latin America employ more than 90 research analysts who cover more than 1,300 companies in nine highly focused industries: Consumer, Energy, Financial Services, Healthcare, Industrial, Mining & Natural Resources, Real Estate, Technology & Communications, and Transportation. We are a top 5 provider of equity research in both the U.S. and North America in terms of companies covered.
About First Business Financial Services, Inc.
First Business Financial Services (Nasdaq:FBIZ) is a $1.2 billion Wisconsin-based bank holding company that specializes in focused financial solutions for businesses, key executives, and high net worth individuals through its operating companies. It is the 2nd largest Wisconsin-based commercial bank holding company listed on NASDAQ or the NYSE. Its companies include: First Business Bank - Madison; First Business Bank - Milwaukee; First Business Bank - Northeast; First Business Trust & Investments; First Business Equipment Finance, LLC; and First Business Capital Corp. For additional information, visit www.firstbusiness.com or call (608) 238-8008.
The First Business Financial Services, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=2667