Webster Financial: Wells Fargo maintains Overweight rating, PT down to $70 from $75.

Webster Financial: Wells Fargo maintains Overweight rating, PT down to $70 from $75.

Wells Fargo has revised its rating and price target for Webster Financial (NYSE:WBS) to Overweight with a new price target of $70, down from $75. This adjustment comes after the bank's third-quarter 2025 results and follows similar moves by Raymond James, which lowered its target to $65 from $68 while maintaining an Outperform rating, according to a Raymond James note.

Webster Financial reported strong financial performance for the quarter, with earnings per share (EPS) of $1.54, surpassing analyst expectations of $1.52. Revenue also exceeded projections at $732.6 million compared to the anticipated $727.54 million. The bank's balance sheet growth, solid credit quality, and fee revenues were highlighted as key positives in the Raymond James note.

Despite the positive earnings report, the stock price experienced a decline in pre-market trading. Wells Fargo noted that while Webster Financial's fundamentals remain strong, tighter loan spreads and origination yields have pressured net interest margins, partially offsetting earnings per share upside. The bank has maintained dividend payments for 39 consecutive years, currently offering a 2.95% yield, as also noted by Raymond James.

Wells Fargo 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 financial community will continue to closely monitor Webster Financial's performance, as the company navigates potential growth catalysts ahead.