Midland States Bancorp eyes best week ever as credit outlook set to improve

Shares of community lender Midland States Bancorp MSBI.O on track for best ever week, if gains hold

Stock has jumped more than 23% so far this week after MSBI announced the sale of its equipment finance portfolio

Analysts say the deal improves MSBI's credit outlook and is likely to improve the bank's franchise value sooner than previously anticipated given better visibility into more consistent credit quality improvement

Elevated losses in the equipment finance business have been a key concern for investors and weighed on MSBI's stock

All five brokerages covering the stock rate it "hold"; median PT is $18 - data compiled by LSEG

As of last close, MSBI down 23% YTD