Wintrust shares get a lift on raised price target from Truist By Investing.com

On Monday, Truist Securities adjusted its outlook on shares of Wintrust Financial (NASDAQ: NASDAQ:), increasing the price target to $118 from the previous $107, while reiterating a Buy rating on the stock. The revision follows a reassessment of the company’s earnings projections and the integration of the Macatawa acquisition, anticipated to complete in the latter part of the fourth quarter of 2024.

The analyst at Truist Securities modified the 2024 earnings per share (EPS) estimate upwards by 2% and decreased the 2025 forecast by 1%. This adjustment was mainly due to the timing of the Macatawa acquisition and higher costs associated with the Customer Depositary Index (CDI). Despite a slight downturn in credit quality during the quarter, the firm expressed little concern, considering the trends manageable.

Wintrust’s pre-provision net revenue (PPNR) showed robust performance in the recent quarter. The analyst expects that the company’s net interest income (NII) will continue to grow, fueled by the expansion of the balance sheet and a relatively stable net interest margin (NIM).

The stock’s performance has seen a pause after a strong start to the year, attributed to shifting expectations regarding Federal Reserve rate cuts. Still, Truist Securities believes that the stock is currently appealing, noting that Wintrust’s reduced asset sensitivity is not fully recognized by the market. The new price target of $118 reflects a valuation of 11.7 times the estimated 2025 earnings per share.

In other recent news, Wintrust Financial has been the subject of several significant developments. The company reported a record net income of over $187 million for the first quarter of 2024 and announced plans to acquire Macatawa Bank, following substantial loan and deposit growth.

Piper Sandler, RBC Capital, and DA Davidson have all raised their price targets for Wintrust Financial, citing the company’s strong net interest income growth and robust loan expansion.

Citi, while lowering its price target to $113, maintained a ‘buy’ rating, highlighting the company’s key growth expectations and market position. Despite the adjustment, Citi’s analysis suggests the company is well-positioned and likely to surpass the higher end of its loan growth guidance.

Keefe, Bruyette & Woods maintained an ‘outperform’ rating on Wintrust, raising the price target to $110, expressing confidence in the company’s robust loan growth and strategic mergers and acquisitions.

These recent developments underscore the financial institution’s continued strong performance and the expectation of continued revenue growth. The raised target prices and positive ratings from various firms reflect confidence in Wintrust Financial’s financial strategy and operational strength. These are the recent developments surrounding Wintrust Financial.

InvestingPro Insights

Following Truist Securities’ positive outlook on Wintrust Financial, key metrics from InvestingPro provide additional insights into the company’s financial health.

With a market capitalization of $6.47 billion and a P/E ratio standing at a favorable 10.92, Wintrust’s valuation suggests a potentially attractive entry point for investors. The company’s revenue growth remains solid, posting a 6.88% increase over the last twelve months as of Q2 2024, indicating a steady upward trajectory in earnings.

An InvestingPro Tip worth noting is that Wintrust Financial has a commendable track record of raising its dividend for 25 consecutive years, underscoring a commitment to returning value to shareholders. Moreover, analysts have revised their earnings upwards for the upcoming period, which could signal further optimism about the company’s financial future.

For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available, which can be accessed with a subscription. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a deeper dive into Wintrust’s financials and projections.

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