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UPDATE: Morgan Stanley Upgrades Webster Financial to Equal-weight on Relative Valuation Improvement

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Earnings Scheduled For April 19, 2018
Earnings Scheduled For January 23, 2018

Morgan Stanley upgraded Webster Financial (NYSE: WBS) from Underweight to Equal-weight and maintained its $22 price target.

Morgan Stanley commented, "Our downgrade of WBS was based on the view that the market was materially overpaying for Webster's strategy of aggressively building out its commercial platform and sharp focus on reducing expenses. The shares' relative valuation gap has narrowed noticeably since the sell-off of the banks began on October 5; they are now trading in line with peers on a P/E basis (12.1x 2013e EPS versus the group at 12.3x) and in line with the regression-implied P/TBV of 1.3x given the bank's expected 11% ROTE in 2013."

Webster Financial closed at $20.89 on Tuesday.

Latest Ratings for WBS

DateFirmActionFromTo
May 2018Deutsche BankMaintainsHoldHold
Apr 2018Morgan StanleyMaintainsUnderweightUnderweight
Mar 2018UBSInitiates Coverage OnNeutral

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Posted-In: Morgan StanleyAnalyst Color Upgrades Pre-Market Outlook Analyst Ratings

 

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