BUZZ-US lender Financial Institutions climbs after KBW upgrades to 'outperform'

Shares of community bank Financial Institutions FISI.O rise as much as 3.5%; last up 2.4% at $27

KBW upgrades FISI to "outperform" from "market perform"; raises PT to $34 from $29, a 28.9% upside to stock's last close

Brokerage says the upgrade is predicated on a valuation reset being on the horizon for FISI

Adds that discount is unwarranted and "now is the time to own FISI shares" as the bank's recent balance sheet restructuring has strengthened earnings forecast and profitability

FISI in December raised $100 mln for balance sheet restructuring

Recent capital raise and balance sheet restructuring helped remove overhangs of below-peer profitability and lower capital level, two factors that have long been viewed as valuation headwinds for the shares — KBW

Two of three brokerages rate the stock "buy" and one "hold"; their median PT is $33 — LSEG

FISI stock jumped 28.1% in 2024