Compass Point reiterated a Neutral rating on Washington Trust Bancorp (NASDAQ: WASH), and raised the price target to $40.00 (from $38.00), following 2Q15 results. WASH reported 2Q EPS of $0.68, ahead of $0.65 consensus.

Analyst Laurie Hunsicker commented, "We reiterate our Neutral rating and raise our price target (PT) from $38 to $40, representing 2.3x tangible book (TB) and 14x FY16E EPS. Due to higher fee income and reduced LL provision assumptions, we revise FY15E from $2.59 to $2.69 and FY16E from $2.72 to $2.84. WASH shares currently trade at a premium to its peers; a premium which we believe is warranted as WASH is a top performing, clean, community bank with $3.6 billion in assets and is a substantial fee generator with $5.2 billion of Wealth Assets Under Management (AUM). Additionally, while the market has seemingly lost focus on asset sensitivity, we note that WASH scorecards as one of the best relative to its New England community bank peers. While our EPS estimates through 2016 do not yet assume a rate move, we believe that WASH shares could appreciate further well in advance of the actual EPS ramp occurring if the asset-sensitivity buytrade reemerges. We note that our PT does not factor in any M&A premium as we believe that it is the board's intent to continue to pursue a path of independence. However, should the board decide to pursue a sale, we believe that WASH would be an attractive candidate."

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Shares of Washington Trust Bancorp closed at $39.95 yesterday.