Market Overview

KBW Upgrades Washington Trust Bancorp, Stock Has 20% Upside

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  • The share price of Washington Trust Bancorp (NASDAQ: WASH) has appreciated 3.09 percent over the past three months, although the stock has been volatile all year.
  • Travis Lan of Keefe, Bruyette & Woods has upgraded the rating on the company from Market Perform to Outperform, while raising the price target from $42 to $44.
  • Lan believes that the stock has 20 percent upside potential from the current levels, which is twice the average of its peer SMID banks.

Analyst Travis Lan explained that the upgrade was also based on Washington Trust's “premier profitability profile,” as well as its revenue diversity and conservative underwriting culture that consistently drive robust credit results.

Lan also listed the company’s strong asset sensitive positive and its position as the leading community bank in Rhode Island as other factors that supported the upgrade.

“While we have consistently identified WASH as a premier community bank, and a core holding for long-term investors, we now believe that the time is right to establish or add to WASH positions,” Lan stated.

Following the underperformance of the stock in 2015, Washington Trust's shares are now trading at a slight discount to peers, which Lan believes is unwarranted.

Lan counts the company's higher profitability, outlook for stable growth, revenue diversity, management strength and leadership in Rhode Island as reasons why the stock deserves to trade at a premium to peers.

Latest Ratings for WASH

DateFirmActionFromTo
Jan 2019DowngradesBuyNeutral
Dec 2017UpgradesNeutralBuy
Jan 2017UpgradesNeutralBuy

View More Analyst Ratings for WASH
View the Latest Analyst Ratings

Posted-In: Bruyette & Woods KeefeAnalyst Color Long Ideas Upgrades Price Target Analyst Ratings Trading Ideas

 

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