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On Monday, Citi analysts adjusted their outlook on Wintrust Financial (NASDAQ:WTFC), reducing the price target to $142.00 from the previous $158.00 while still holding onto a Buy rating for the stock. The reassessment came after a mid-quarter update with the company’s management, which provided a clearer picture of the expected full-year growth. Currently trading at $112.86, the $7.53 billion market cap company maintains a P/E ratio of 10.76x, though InvestingPro analysis suggests the stock is trading above its Fair Value.
The analysts noted that despite signs of softness in the first quarter from peer banks and Federal Reserve H.8 data, they believe Wintrust Financial is on track to achieve positive growth during this period. They anticipate an even stronger performance in the second quarter, propelled by premium finance renewals. Citi projects a 4.6% net growth for the first half of 2025, which translates to an annualized rate of 9.2%. This aligns with the company’s impressive revenue growth of 8.88% over the last twelve months. They also expect a stable net interest margin (NIM) outlook for the company. InvestingPro subscribers can access detailed financial health scores and 8 additional key insights about WTFC’s performance.
The commentary from Wintrust Financial’s management on credit was positive, reinforcing the analysts’ expectations. They also highlighted that if mortgage activity picks up on a national level, their current fee income and expense projections might be too conservative. The low loan loss provision expense is a significant contributor to their earnings per share (EPS) forecast, which is more optimistic compared to the consensus.
Citi’s revised price target reflects a more cautious stance in the near term, but the continued Buy rating indicates their long-term confidence in Wintrust Financial’s growth potential and financial health. The new price target and insights from the company’s management offer investors a detailed view of what to expect from Wintrust Financial in the coming months.
In other recent news, Wintrust Financial Corporation reported its Q4 2024 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $2.63, surpassing the forecasted $2.48. However, the company experienced a slight revenue miss, with actual revenue of $638.6 million, falling short of the expected $641.75 million. Wintrust achieved a record net income for 2024, reaching $695 million, marking an 11.5% increase from the previous year. The firm also demonstrated robust growth in loans and deposits, with annualized increases of 8% and 9%, respectively. Despite the positive EPS results, the company’s stock saw a 1.3% decline in after-hours trading, potentially due to the revenue miss. Looking ahead, Wintrust anticipates mid to high single-digit loan growth for 2025, with a stable net interest margin around 3.50%. Analysts from RBC Capital Markets and D.A. Davidson have shown interest in the company’s loan growth strategies and expense management, reflecting broader market concerns and opportunities. Additionally, Wintrust remains focused on organic growth and potential acquisitions, as highlighted by company executives during the earnings call.
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