On Tuesday, RBC Capital Markets analysts raised the price target for Webster Financial Corporation, traded on the New York Stock Exchange under the ticker (NYSE:WBS), from $66.00 to $68.00, while maintaining an Outperform rating on the stock.
The analysts' adjustment followed a recap of Webster Financial's fourth-quarter results, which highlighted a strong performance.
The company reported a robust margin and an increase in net interest income, bolstered by solid fee results and managed expenses.
Despite higher than anticipated credit costs due to some negative migration, Arfstrom noted that credit metrics seem manageable.
Looking ahead, the analyst pointed out that the financial year 2025 outlook for Webster Financial aligns with current forecasts and may even offer potential upside against consensus expectations.
This outlook is underpinned by the company's strong and diverse funding base and an improving growth outlook.
The analysts concluded that "Webster remains well positioned over the long term given its strong and diverse funding base, and improving growth outlook."
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