Assessing Webster Financial: Insights From 9 Financial Analysts

In the preceding three months, 9 analysts have released ratings for Webster Financial (NYSE:WBS), presenting a wide array of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $67.0, with a high estimate of $77.00 and a low estimate of $61.00. Surpassing the previous average price target of $63.00, the current average has increased by 6.35%.

Interpreting Analyst Ratings: A Closer Look

In examining recent analyst actions, we gain insights into how financial experts perceive Webster Financial. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Webster Financial. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Webster Financial compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

To gain a panoramic view of Webster Financial's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Webster Financial analyst ratings.

Get to Know Webster Financial Better

Webster Financial Corp is a full-service provider of financial services, offering commercial and consumer banking, mortgages, and investment advisory along with trust and wealth management services in Connecticut, New York, Rhode Island, Massachusetts, and Pennsylvania. The company's segment includes Commercial Banking, HSA Bank, and Consumer Banking. It generates maximum revenue from the Commercial Banking segment.

Financial Insights: Webster Financial

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining Webster Financial's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.65% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Webster Financial's net margin excels beyond industry benchmarks, reaching 31.27%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Webster Financial's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.48%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Webster Financial's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.28%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Webster Financial's debt-to-equity ratio stands notably higher than the industry average, reaching 0.43. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.