Citi raises Wintrust Financial stock target to $115, retains Buy rating

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On Monday, Citi updated its stance on Wintrust Financial (NASDAQ:), increasing the price target to $115 from $114 while keeping a Buy rating on the stock. The adjustment follows a Dinner NDR with Wintrust’s COO Dave Dykstra, which took place late last week. Post-event discussions indicated a generally positive shift in sentiment among investors, driven by the company’s sustained net interest income (NII) trends, net interest margin (NIM) stability, and controlled credit risk.

The analysis of Wintrust Financial’s performance highlighted a notable 24% gain over the past 12 months, outpacing its peers. This led to cautious expectations among the buyside community, yet the feedback after the meeting was unexpectedly optimistic. The positive outlook is rooted in the bank’s consistent financial indicators and the potential for continued growth.

Looking ahead, Citi believes that Wintrust Financial’s guidance for 2024, which projects mid-to-high single-digit growth, is within reach. The analyst suggests that there is a slight leaning toward the upper end of this forecast, considering the bank’s ongoing market share gains and opportunities in insurance premiums. The bank’s strategic moves have positioned it well for capturing more of the market.

The report also notes that Wintrust’s expense trends appear to be well-managed, with pre-provision net revenue (PPNR) expectations for 2024 being adjusted in alignment with earnings. This financial discipline, along with the bank’s strategy for gaining market share and maintaining margin stability, is expected to continue fueling its relative outperformance in the market.

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