Saturday, January 24, 2026

RBC Capital Maintains Constructive Stance on Webster Financial (WBS) Following Q4 Preview

Webster Financial Corporation (NYSE:WBS) is one of the best large cap value stocks to buy in 2026. On January 12, RBC Capital raised its price target on Webster Financial to $72 from $70 and maintained an Outperform rating. In its Q4 2025 earnings preview, RBC Capital updated its regional bank price targets while maintaining a constructive stance on the sector’s fundamentals. The firm expects a stable outlook compared to Q3, driven by improvements in loan volume and revenue growth.

On January 9, Truist also increased its price target for Webster Financial Corporation (NYSE:WBS) to $72, up from the previous target of $67, while maintaining a Buy rating. This adjustment came just ahead of the banking earnings season.

RBC Capital Maintains Constructive Stance on Webster Financial (WBS) Following Q4 Preview
RBC Capital Maintains Constructive Stance on Webster Financial (WBS) Following Q4 Preview

Truist suggested that small- to mid-sized regional banks are well-positioned to recover after underperforming large banks in 2025. Potential drivers for this growth include a steepening yield curve, the restart of share buybacks, and organic expansion. Additionally, the current attractive valuation gaps compared to larger peers could help these regional banks regain their previous market standing.

Webster Financial Corporation (NYSE:WBS) operates as the bank holding company for Webster Bank, National Association, which provides a range of financial products and services to businesses, individuals, and families in the US.

While we acknowledge the potential of WBS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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