BUZZ-Flagstar Bank rises after Truist upgrades to 'buy'

** Regional lender Flagstar Bank's FLG.N shares rise 1.5% to $13.77

** Truist Securities upgrades FLG to "buy" from "hold"; raises PT to $17, implying a 25.3% upside to stock's last close

** Brokerage says FLG has made substantial progress shoring up its balance sheet and laying the groundwork to transition its business model to a more traditional commercial bank

** Says there is increased confidence that FLG has stabilized its financial position enough to use the capital to repurchase stock

** "While FLG's C&I (commercial and industrial) growth ambitions are no sure thing, even if not achieved that creates more dry powder for share buybacks when they presumably resume later this year," says Truist analyst David Smith

** Eight of 18 brokerages rate the stock "buy" or higher and 10 "hold"; their median PT $16 - data compiled by LSEG

** As of last close, FLG stock up 7.8% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))