DA Davidson lowers Washington Federal stock price target on loan sales
DA Davidson reduced its price target for Washington Federal (WAFD) to $31, citing loan sales impacting growth but improving profitability. The stock trades near its 52-week low, with a P/E ratio of 9.22. Q4 2026 earnings missed estimates, but revenue exceeded expectations. The EverBank acquisition is expected to close in early 2027.
How this was made
The 30-second read
Why it matters
The target reduction reflects concerns over loan‑sale profitability and charge‑offs, potentially prompting short sellers.
Market read
Analyst downgrade adds downside pressure to a bank already underperforming, relevant for traders in regional banking stocks.
What to watch
EverBank acquisition progress may offset short‑term earnings weakness.
Background
Washington Federal reported mixed Q4 results with revenue beat but earnings miss; analyst now cuts target.
Ticker impact
DA Davidson lowered Washington Federal's price target to $31, indicating a bearish outlook.
likely pressure as investors price in the lower target
Target reduction signals weaker growth expectations; stock already down 16% over six months.
Market effects
May weigh on regional banks as analysts reassess loan‑sale impact on profitability.
US regional banking sector could see modest bearish sentiment.
Limited to US banking sector; no broader macro effect.
Counterpoint
If loan‑sale profitability improves net interest margin, the target cut could be premature.
Key entities
- companyWashington Federal
US regional bank (NASDAQ:WAFD) subject of analyst downgrade.
- analystDA Davidson
Equity research firm issuing the price‑target cut.
