Raymond James lowers Webster Financial stock price target to $65 on NIM pressure

Published 20/10/2025, 10:48
Raymond James lowers Webster Financial stock price target to $65 on NIM pressure

Investing.com - Raymond James lowered its price target on Webster Financial (NYSE:WBS) to $65 from $68 while maintaining an Outperform rating following the bank’s third-quarter results. According to InvestingPro data, the $8.94 billion bank currently trades at $54.27, with 5 analysts recently revising their earnings estimates upward.

The firm noted Webster Financial delivered strong balance sheet growth, solid credit quality, minimal non-deposit funding institution risk, and stronger fee revenues in the quarter. The bank has maintained dividend payments for 39 consecutive years, currently offering a 2.95% yield.

Despite these positives, Raymond James highlighted that tighter loan spreads and origination yields pressured net interest margin, while higher expenses partially offset earnings per share upside.

The firm slightly reduced its earnings per share forecasts but maintained that Webster Financial’s fundamental outlook remains favorable, citing continued credit improvement, capital flexibility, and potential growth catalysts ahead.

Raymond James continues to view the risk-reward profile favorably, noting that Webster Financial shares trade at a price-to-earnings discount compared to peers.

In other recent news, Webster Financial Corporation reported its third-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.54, exceeding the forecasted $1.52. Revenue also outperformed projections, reaching $732.6 million compared to the anticipated $727.54 million. These results highlight a positive financial performance for the quarter. Despite the favorable earnings report, the company’s stock price experienced a decline in pre-market trading. Analysts had projected lower figures, making the actual results noteworthy for investors. The financial community continues to monitor Webster Financial’s performance closely.

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