Monday, FBR Capital Markets upgraded Washington Federal Inc. (WFSL) shares to Outperform from Market Perform with a price target of $22. The brokerage maintained its 2010 EPS estimate of $0.38 and its 2011 estimate of $1.10.
Analyst Paul Miller Jr. upgraded the stock given the recent pullback in shares, which makes the risk/reward much more attractive, in his view. Following WFSL's acquisition of Horizon Bank on January 8, the analyst downgraded shares to Market Perform, as he felt that the market had gotten ahead of itself in pricing in a large FDIC-assisted acquisition for WFSL.
Rather than making one large acquisition, the analyst believes it is increasingly likely that WFSL completes a string of smaller FDIC-assisted transactions in the coming year, which will still be accretive to earnings and tangible book value.
The company holds about $485 million in excess capital, assuming a base 8.0% tangible common equity ratio, and the analyst estimates WFSL could acquire up to $6 billion in assets without raising additional capital. The analyst would note that if WFSL were to complete a single, large acquisition in the $5 billion to $7 billion range, he believe shares would be fairly valued in the mid $20s.
Currently, WFSL is up $0.34 or 1.81% and trading at $19.09.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.