UBS Assumes Webster Financial (WBS) at Neutral

UBS analyst Timur Braziler assumes coverage on Webster Financial (NYSE: WBS) with a Neutral rating and a price target of $69.00 (from $75.00).

The analyst comments: "We see no material risk to the sale to Banco Santander closing given the lack of precedent, the current regulatory temperature as it relates to M&A, and sizeable termination fees (~$500MM) for WBS. The stock is currently trading in-line with deal terms, implying minimal market skepticism.

We assume coverage of WBS with a Neutral rating. We see no material risk to the approval of the sale to Banco Santander announced on Feb. 3, 2026 and expected to close in 2H26. While we view the macro environment as uncertain, we see no substantial risk that could derail the deal closing. Additionally, we view the current regulatory environment as supportive for the success of M&A deals, especially compared to the prior administration. Lastly, the ~$500MM termination fee (~2.5x FHN's termination fee paid by TD) is the right incentive for the deal to go through."

For an analyst ratings summary and ratings history on Webster Financial click here. For more ratings news on Webster Financial click here.

Shares of Webster Financial closed at $70.22 yesterday.

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