NEW YORK (TheStreet) -- Shares of Webster Financial Corp. (WBS - Get Report) closed lower by 1.87% to $36.20 on heavy trading volume on Monday as Barclays reduced its price target on the stock to $40 from $42 today. The firm also maintained its "overweight" rating.
The firm held investor meetings with the Waterbury, CT-based bank and financial holding company last week.
The lower price target reflects higher expense growth tied to Webster Financial's recent franchise investments, such as its expansion in Boston.
"We continue to think the reasons to own WBS shares are its adherence to strict economic profit decision making, above-average loan growth, and leverage to the secular growth in health savings accounts (HSAs), where it is the leading bank administrator," Barclays said in an analyst note.
About 1.45 million of the company's shares were traded today vs. its average volume of 718,630 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.
This is driven by a few notable strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, increase in net income and expanding profit margins.
The team believes its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WBS