On Friday, Truist Securities adjusted the price target for Wintrust Financial (NASDAQ:WTFC) to $150 from the previous target of $151, while reaffirming a Buy rating on the stock. Currently trading at $133.03, the stock has analyst targets ranging from $130 to $158, with a strong consensus recommendation of 1.54 (Buy). According to InvestingPro data, six analysts have recently revised their earnings estimates upward for the upcoming period. Analysts at Truist Securities cited a revised earnings per share (EPS) estimate for the years 2025 and 2026 as the primary reason for the modification in the price target.
The firm's analysts have updated the expected EPS for Wintrust Financial for the year 2025 to $10.43, down from $10.54, and for 2026 to $11.15, a slight decrease from $11.16. Trading at a P/E ratio of 12.93 and showing solid revenue growth of 8.88% in the last twelve months, the stock appears to be trading above its Fair Value according to InvestingPro analysis. The new price target is based on these updated EPS estimates and a forward twelve-month (NTM) multiple of 13.5 times. The adjustments are rooted in an anticipated higher expense base due to integration and amortization costs associated with Macatawa Bank, which Wintrust acquired, and projected lower fee income due to challenges in the mortgage banking sector's recovery.
Despite these revisions, Truist Securities maintained the 2025 net interest margin (NIM) forecast for Wintrust at 3.50%, aligning with the company's reiterated guidance. In terms of growth, the analysts expect both loans and deposits to increase by approximately 7% in 2025, which is consistent with Wintrust's own projections of mid- to high-single-digit growth.
The projected expenses for Wintrust in 2025 are set at $1.52 billion, with an increase to $1.59 billion in 2026. This expense forecast aligns with the company's guidance for a mid-single-digit core expense growth. Notably, InvestingPro data shows that Wintrust has maintained dividend payments for 25 consecutive years and has raised its dividend for 11 straight years, demonstrating strong financial stability. The adjustments provided by Truist Securities reflect a meticulous analysis of Wintrust's financial outlook and are intended to guide investors on the potential value of the company's stock. For a comprehensive analysis including 8 additional ProTips and detailed financial metrics, investors can access the full Pro Research Report on InvestingPro.
In other recent news, Wintrust Financial Corporation has seen a series of significant developments. The company reported a net income exceeding $170 million in Q3, meeting expectations. This was notably fueled by the acquisition of Macatawa Bank, which added $1.3 billion in loans and $2.3 billion in deposits, resulting in a record net interest income of $503 million for Wintrust.
Additionally, Wintrust has amended its credit agreement, extending its maturity date and appointing U.S. Bank National Association as its new administrative agent, following the resignation of Wells Fargo (NYSE:WFC). The Revolving Credit Maturity Date has now been extended to December 2025.
In the world of analysts, Piper Sandler raised Wintrust Financial's price target to $156, while Citi increased its price target to $158, both maintaining positive ratings on the stock. Truist Securities also began coverage on Wintrust Financial shares, issuing a Buy rating and a price target set at $151.00.
Furthermore, the company's Board of Directors has approved a dividend of $0.50 per share on its common stock, marking an 11.1% rise from the previous quarterly dividend. This continues Wintrust's impressive 11-year streak of dividend increases.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.