Barclays Maintains an 'Overweight' on Webster Financial (WBS); 3Q11 EPS Preview: NIM Concerns Ahead

Barclays maintains an 'Overweight' on Webster Financial (NYSE: WBS) price target of $23.00.

Barclays analyst says, "We expect WBS to report 3Q11 EPS of $0.40 versus our prior $0.43 estimate and the $0.40 consensus. The reduction to our EPS forecast primarily reflects an increase to our provision forecast following softening economic data in the quarter and a modest reduction to our average earning asset estimate. To reflect the recent decline at the long end of the yield curve, which is likely to lead to net interest margin pressures, we also lowered our 2011 and 2012 EPS estimates to $1.50 (was $1.55) and $1.60 ($1.80), respectively."

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 $17.37 yesterday.

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