The shares trade for 1.4 times their reported June 30 tangible book value of $15.53, and for 13 times the consensus 2013 earnings estimate of $1.81 a share. The consensus 2012 EPS estimate is $1.76. Based on a 10-cent quarterly the shares have a dividend yield of 1.87%. Jefferies analyst Casey Haire rates Webster a "Hold," with a $22 price target, and said on Friday that the company "demonstrated nice acceleration in commercial loan growth," and that loan "yields held up relatively well (down 4bp), which suggests WBS is still taking share without compromising on price," but also called the improvement in the efficiency ratio "underwhelming," and called "into question achievability of a 60% target by 4Q in a difficult revenue environment." The analyst also said that "core fees also increased despite lower mortgage banking thanks to a $2.5mm increase in "other" income, which may not be sustainable." Interested in more on Webster Financial? See TheStreet Ratings' report card for this stock.
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