Jefferies Keeps Buy Rating on Webster Financial (WBS), Raises Price Target

Webster Financial Corporation (NYSE:WBS) is one of the 10 Best Financial Stocks on Wall Street’s Radar. On July 18, Jefferies increased its price target for Webster Financial Corporation (NYSE:WBS) from $70 to $72 while keeping a “Buy” rating.

This decision came after the company reported its Q2 2205 earnings. Webster Financial Corporation (NYSE:WBS) reported core earnings per share of $1.52, surpassing both the consensus estimate of $1.42 and Jefferies’ estimate of $1.41.

Webster Financial Corporation’s (NYSE:WBS) core pre-provision net revenue (PPNR) for the quarter reached $370 million, exceeding Jefferies’ forecast of $356 million. The company’s management also raised its net interest income guidance.

According to Jefferies, the corporation also reported an improvement in credit quality this quarter and maintained a stable credit outlook.

The investment firm noted recent changes in federal law that broadened Health Savings Account (HSA) eligibility. This can significantly grow the addressable market for Webster Financial Corporation’s (NYSE:WBS) HSA Bank business.

Webster Financial Corporation (NYSE:WBS) is an American bank holding company for Webster Bank, which is a commercial bank that offers a broad range of financial products and services to businesses, individuals, and families.

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Disclosure: None. This article is originally published at Insider Monkey.