Jefferies Upgrades WBS To Buy, Raises PT To $23

Jefferies is upgrading Webster Financial WBS to Buy from Hold and bumping EPS estimates to $1.15 from $1.10 in 2011. Jefferies is also raising its price target to $23 from $19. “WBS holds a solid loan loss reserve ratio (3.1% vs. 2.5% peer average), despite consistent improvements in underlying credit quality (losses and NPAs have declined every quarter this year),” Jefferies writes. “Accordingly, we believe reserve bleed will increase in 2011 and drive tangible book value meaningfully higher.” Webster Financial closed Tuesday at $19.53.