Barclays Maintains an 'Overweight' on Webster Financial (WBS); 3Q11 EPS Review: NIM Concerns Weigh
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Price: $77.57 --0%
Rating Summary:
8 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 25
Rating Summary:
8 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 25
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Barclays maintains an 'Overweight' on Webster Financial (NYSE: WBS) price target of $23.00.
Barclays analyst says, "The title of our 3Q11 preview note "NIM Concerns Ahead" proved fairly prescient as Webster Financial called for 5-10bps of linked quarter net interest margin compression in 4Q11 with additional pressure thereafter. We attribute most its shares' underperformance on Friday to this forecast (though it did bounce off the lows). In addition to its margin outlook, we continue to see some near-term headwinds as the Durbin amendment takes effect and loan demand remains muted. However, we are encouraged by its progress on its P260 efficiency initiative and expect its franchise investments to translate into longer-term market share gains."
"Following the better than expected 3Q11 bottom-line results and guidance for 4Q stability in most areas (excluding NIM), we raised our 2011 EPS estimate to $1.61 from $1.50. However, our 2012 EPS estimate of $1.60 remains unchanged as we expect greater net interest margin headwinds to offset its continued progress on its expense initiatives."
For more ratings news on Webster Financial click here and for the rating history of Webster Financial click here.
Shares of Webster Financial closed at $17.90 yesterday.
Barclays analyst says, "The title of our 3Q11 preview note "NIM Concerns Ahead" proved fairly prescient as Webster Financial called for 5-10bps of linked quarter net interest margin compression in 4Q11 with additional pressure thereafter. We attribute most its shares' underperformance on Friday to this forecast (though it did bounce off the lows). In addition to its margin outlook, we continue to see some near-term headwinds as the Durbin amendment takes effect and loan demand remains muted. However, we are encouraged by its progress on its P260 efficiency initiative and expect its franchise investments to translate into longer-term market share gains."
"Following the better than expected 3Q11 bottom-line results and guidance for 4Q stability in most areas (excluding NIM), we raised our 2011 EPS estimate to $1.61 from $1.50. However, our 2012 EPS estimate of $1.60 remains unchanged as we expect greater net interest margin headwinds to offset its continued progress on its expense initiatives."
For more ratings news on Webster Financial click here and for the rating history of Webster Financial click here.
Shares of Webster Financial closed at $17.90 yesterday.
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