UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Webster Financial Corporation

In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating on Webster Financial Corporation

, and slightly raised its price target from $24.50 to $25.00. J.P. Morgan noted, “Although the macro environment and persistent low rates remain problematic for all banks, including Webster, the company was able to maintain a stable ROTE of ~12% in 2Q due in large part to items such as expense cuts offsetting pressure on the net interest margin. While we like that management seems to be working hard to drive top-line growth while simultaneously trimming expenses, over the near term these efforts seem to just be fighting the tide. In fact, with the NIM down 4 bps compared to the most recent quarter and 16 bps compared to the year-ago quarter, the pace of compression is expected to continue with management guiding to 3-5 bps of compression in 3Q12.” Webster Financial Corporation closed on Friday at $24.03.