Update shared on18 Aug 2025
Fair value Decreased 14%Analysts have lowered Washington Trust Bancorp’s price target from $35.50 to $30.50, citing concerns over unattractive relative valuation, elevated dividend payout limiting capital flexibility, management’s lack of buyback support, and heightened earnings volatility due to rate-sensitive mortgage banking exposure.
Analyst Commentary
- Bearish analysts see the stock's valuation as unattractive relative to peers.
- Management has indicated no intention to support the share price via repurchases.
- Earnings are viewed as potentially more volatile due to exposure to rate-sensitive mortgage banking revenues.
- The dividend payout ratio is notably higher than peers, raising concerns over slower capital generation.
- Expectations are for slower future growth given these capital allocation and business-mix headwinds.
Valuation Changes
Summary of Valuation Changes for Washington Trust Bancorp
- The Consensus Analyst Price Target has significantly fallen from $35.50 to $30.50.
- The Consensus Revenue Growth forecasts for Washington Trust Bancorp has significantly risen from 6.0% per annum to 54.9% per annum.
- The Net Profit Margin for Washington Trust Bancorp has significantly risen from 23.38% to 55.84%.
Disclaimer
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