UPDATE: Jefferies Raises PT on Webster Financial Following More Stable NIM Forecast

In a report published Monday, Jefferies analyst Casey Haire reiterated a Hold rating on Webster Financial WBS, and raised the price target from $24.50 to $27.00.

In the report, Jefferies noted, “We raise our 2014 EPS to $2.05 from $1.90 to account for a more stable NIM forecast. Despite fading reserve bleed and mortgage banking, EPS run-rates are poised to grow from here thanks to a stronger spread income forecast, which is enjoying tailwinds from improved loan pricing, better reinvestment yields and less premium amortization headwind. Upside to our model is possible if mgmt. finds a smart way to deploy excess capital.”

Webster Financial closed on Friday at $26.74.