UPDATE: Sterne Agee Upgrades Webster Financial to Buy on Attractive Book Value
In a report published Friday, Sterne Agee upgraded shares of Webster Financial (NYSE: WBS) from Neutral to Buy and established a $25.00 price target on confident market environment.
Sterne Agee reported that. “We are upgrading Webster Financial to Buy from Neutral and establishing a $25 price target. Our price target equals 13.6x our revised 2014 EPS estimate and 1.4x our projected TBV one year out. We see the company generating full-year returns on tangible common equity (ROTCE) of 11.2% and 10.6%. Northeast peers which generate similar returns currently trade at 140%-150% of tangible book value. Over the last three months, the shares have increased by 6.0%. This compares to a 10.3% increase for the NASDAQ Bank Index.”
Webster Financial shares closed that $22.02 on Thursday.
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