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On Monday, Citi analyst Benjamin Gerlinger increased the price target for Wintrust Financial (NASDAQ:WTFC) shares to $141.00, up from the previous target of $130.00, while reiterating a Buy rating on the stock. The new target sits well within the analyst range of $115-$154, with InvestingPro data showing 10 analysts having revised their earnings estimates upward for the upcoming period. Gerlinger’s adjustment follows Wintrust Financial’s recent announcement of a $425 million preferred stock offering. The offering is intended to refinance the existing preferred D and E stock, valued at $412.5 million, which is set to transition from fixed to floating rates later in the summer.
The analyst pointed out that the timing of this offering coincides with the significant growth Wintrust Financial experienced in the second quarter (Q2) of 2022, attributed to Premium Finance seasonality. The company, now valued at $7.77 billion, has maintained strong financial performance with revenue growth of 8.51% in the last twelve months. This growth was previously supported by a follow-on common stock offering that raised $296.7 million, although it was based on a smaller capital foundation. Gerlinger suggests that the alignment of the offering with the growth spurt is coincidental rather than strategic.
Gerlinger also mentioned that he has increased his earnings per share (EPS) estimates for Wintrust Financial slightly as he refines his calculations. He cited the expected substantial growth from Premium Finance in the upcoming Q2, along with contributions from commercial and industrial (C&I) and commercial real estate (CRE) sectors, as reasons for the bank’s strong positioning to outperform in the current environment of softer loan growth.
In his analysis, Gerlinger expressed confidence in Wintrust Financial’s potential to outperform its peers, especially in a risk-on market, where he anticipates that bank growth premiums could expand from their current levels. This outlook is based on the bank’s strategic financial maneuvers and its robust growth trajectory in key business areas, supported by its strong return over the last month and five-year performance track record.
In other recent news, Wintrust Financial Corporation reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $2.69, above the forecasted $2.48. The company’s revenue was slightly below expectations, totaling $643.11 million compared to the anticipated $643.19 million. Wintrust’s strong performance was driven by record net interest income of $526 million and significant loan growth at an annualized rate of 6%, alongside an 8% increase in deposits. Analysts at DA Davidson maintained a Buy rating with a $140 price target, citing Wintrust’s resilience and robust credit profile amid macroeconomic uncertainties. Meanwhile, Stephens analyst Terry McEvoy adjusted the price target to $132 from $145 but retained an Overweight rating, acknowledging the company’s stable net interest margin and lower-risk growth strategy. The bank’s strategic reserve buildup and cautious approach were highlighted as positive steps to mitigate potential future risks. Overall, Wintrust’s financial results and strategic initiatives have reinforced confidence among analysts, making it a notable stock in the banking sector.
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