Washington Federal Initiated At Neutral By JP Morgan

JP Morgan has published a research report on Washington Federal, Inc. WFSL and has initiated coverage on the company at Neutral. In the report, JP Morgan writes "Although Washington Federal today faces many of the same credit quality and growth challenges as the majority of banks in our coverage group, a key point of differentiation for WFSL versus the typical bank should unfold as the economic recovery continues to play out. While we expect to see credit normalization at WFSL as we do for the majority of banks under coverage, we believe the key point of differentiation lies in WSFL's growth outlook. While we believe most banks are positioned to see an improvement in loan growth and net interest margins tied to rising rates, the benefit to WFSL appears more singular, tied to a liability sensitive balance sheet. In fact, while many banks enjoy the dual benefit of improved loan growth and higher NIMs, we believe WFSL is likely to see the top line benefit from improved loan growth offset by lower spreads." JP Morgan has also issued a $17.50 price target on Washington Federal, which closed yesterday at $14.97.