Webster Financial: Raymond James Downgrades to Outperform, PT to $65 from $68.

Webster Financial: Raymond James Downgrades to Outperform, PT to $65 from $68.

Raymond James Financial Inc. has revised its price target for Webster Financial (NYSE: WBS) to $65, down from $68, while maintaining an "Outperform" rating. This adjustment comes following the bank's third-quarter results and reflects the impact of tighter loan spreads and origination yields on the net interest margin. Despite the downward revision, Raymond James acknowledges the bank's strong balance sheet growth, solid credit quality, and minimal non-deposit funding institution risk. Additionally, the bank has seen an improvement in fee revenues and has maintained a 39-year streak of dividend payments, currently offering a 2.95% yield.

In the third quarter of 2025, Webster Financial Corporation reported earnings per share (EPS) of $1.54, surpassing the forecasted $1.52. Revenue also exceeded projections, reaching $732.6 million compared to the anticipated $727.54 million. Despite these positive results, the company's stock price experienced a decline in pre-market trading. Analysts had projected lower figures, making the actual results noteworthy for investors.

Raymond James continues to view Webster Financial's risk-reward profile favorably, noting that the shares trade at a price-to-earnings discount compared to peers. The firm expects continued credit improvement, capital flexibility, and potential growth catalysts to drive future performance.