Stock Price & Analysis

Based on the provided data and recent market activity, here's a concise analysis of WBS stock:

Technical Analysis

The stock is showing bearish momentum with a -2.81% decline in the last trading session, closing at $59.14. The RSI at 51.52 indicates neutral momentum, while the MACD at 0.88 suggests a slightly bullish signal, though weakening.

Analyst Sentiment Recent analyst actions show strong bullish sentiment:

• RBC Capital maintains Buy rating with $68 PT (15% upside)
• JP Morgan maintains Buy with $65 PT (10% upside)
• Wells Fargo upgraded to Buy with $75 PT (27% upside)
• UBS initiated coverage with Buy rating and $76 PT (29% upside)

Recent Performance & Fundamentals Webster Financial reported Q4 2024 results:

• EPS of $1.43 beat estimates but declined from $1.46 YoY
• Revenue increased 4.1% YoY to $661M
• Net interest income rose 6.6% YoY
• Credit quality shows some deterioration with non-performing assets rising significantly

Key Concerns

• Rising credit costs with provisions up 76.4% YoY
• Non-performing assets increased to $461.8M from $218.6M YoY
• Net charge-offs ratio increased to 0.47% from 0.27%

Market Position The stock is currently trading between its Fibonacci support of $58.39 and pivot point of $59.85, suggesting a critical technical level that could determine near-term direction.

Based on the combination of strong analyst support, decent earnings performance, but rising credit quality concerns, WBS appears to be a hold at current levels. Wait for credit metrics to stabilize before establishing new positions.

Based on the provided data and analysis, here is the price prediction for WBS stock in 2025:

Webster Financial (WBS) is expected to reach $68 by end of 2025, representing a 15% upside from current price of $59.14, driven by strong earnings performance and strategic growth initiatives in commercial banking. The bank's recent Q4 2024 results showed resilient performance with EPS of $1.43 beating estimates, though loan growth remains moderate at 1.1% quarter-over-quarter. Technical indicators suggest near-term support at $58.39 with resistance at $61.31.

The bank's focus on improving credit card platform and expanding commercial banking business positions it well for 2025 growth, despite broader industry challenges of tepid loan demand.

The S1 support level for WBS Stock is $58.39 ,The R1 resistant level for WBS Stock is $61.31.

As of the end of day on 2025-02-11, the price of WBS Stock was $58.61.

The target price for WBS Stock according to analyst rating is 72.00, with the highest price target at 80.00 and the lowest at 65.00. Analysts have a Strong Buy rating on WBS Stock overall.

The market cap of WBS is $10.1B.

Based on the provided data, here's a comprehensive analysis of WBS's valuation:

Valuation Analysis WBS currently shows a PE ratio of 12.5 for Q4 2024, which is higher than previous quarters in 2024, indicating some valuation expansion. The EV/EBITDA ratio has remained relatively stable around 10-11x throughout 2024, suggesting consistent operational valuation.

Financial Performance Net income has shown a declining trend throughout 2024:

• Q1 2024: $210.1M
• Q2 2024: $175.5M
• Q3 2024: $186.8M
• Q4 2024: $173.6M

This consistent decline in profitability raises some concerns about operational efficiency.

Profitability Metrics ROE has declined steadily from 10.18% in Q1 2024 to 8.72% in Q4 2024, while net margin decreased from 32.72% to 27.20% during the same period, indicating deteriorating profitability.

Analyst Sentiment Recent analyst actions show positive sentiment:

• RBC Capital maintained a Buy rating with a price target increase to $68
• Wells Fargo upgraded to Buy with a $75 target
• UBS initiated coverage with a Buy rating and $76 target

Conclusion WBS appears slightly overvalued considering:

1. Declining profitability metrics
2. Higher PE ratio compared to recent quarters
3. Deteriorating ROE and net margins
4. However, strong analyst support suggests potential upside

Webster Financial Corporation is a holding company for Webster Bank, National Association and its HSA Bank division. The Webster Bank, along with its HSA Bank Division, is a commercial bank in the Northeast that delivers a range of digital and traditional financial solutions. Its segments include Commercial Banking, HSA Bank, and Consumer Banking. Commercial Banking serves businesses through its commercial real estate and equipment finance, middle market, business banking, asset-based lending and commercial services, public sector finance, mortgage warehouse, sponsor and specialty finance, verticals and support, private banking, and treasury management business units. HSA Bank segment offers a consumer-directed healthcare solution that includes health reimbursement arrangements, flexible spending accounts, and commuter benefits. The Consumer Banking segment operates a distribution network, primarily throughout southern New England and the New York Metro and Suburban markets.

Based on the provided data and market analysis, here's the price prediction for WBS stock by 2030:

Webster Financial (WBS) stock is projected to reach $85-90 by 2030, driven by its strong market position in commercial banking and consistent loan growth trajectory. The bank's recent Q4 2024 performance showing solid loan growth of 1.1% sequentially to $52.5 billion and stable deposit base of $64.7 billion demonstrates sustainable business fundamentals. RBC Capital's current price target of $68 and positive analyst ratings suggest steady upward momentum in the medium term.

The views expressed are opinions only and this is not investment advice. Past performance does not guarantee future results. Please consult with a financial advisor before making any investment decisions.

WBS has a total of 4131 employees.