Stephens raised its price objective for WSFS Financial (NASDAQ:WSFS) to $71.00 from $66.00 on Wednesday and retained an Overweight rating following the company’s latest earnings release.
The firm highlighted WSFS Financial’s core pre-provision net revenue (PPNR) of $116.5 million, which exceeded consensus estimates by 12%. Stephens attributed the upside to a combination of stronger net interest income, higher fee income and lower operating expenses driving the outperformance.
On the lending front, WSFS recorded organic loan growth that annualized to 9.2% in the quarter, a pace well above the Street expectation of 4.0%. The company’s net interest margin (NIM) came in at 3.83%, 2 basis points higher than consensus.
For 2026, WSFS provided an outlook that calls for continued double-digit earnings-per-share growth, an approximate 1.40% return on assets and an efficiency ratio in the high 50s. Those company outlook items compare with pre-earnings Street estimates for a 1.26% return on assets and a 61.8% efficiency ratio.
The bank completed substantial capital returns in fiscal 2025, repurchasing 9.3% of its outstanding shares and executing a total payout ratio of 110%. Management signaled an intention to remain active with share repurchases while targeting mid-single-digit loan growth and a net interest margin of roughly 3.80% going forward.
WSFS’s most recent quarterly results also beat analyst expectations on both the bottom line and revenue. Fourth-quarter 2025 earnings per share were $1.43, 16.26% above the consensus estimate of $1.23. Revenue for the quarter reached $271.9 million versus the $267.36 million forecast, reflecting stronger-than-expected top-line performance.
Implications and context
The combination of higher-than-expected PPNR, elevated organic loan growth and a slightly stronger NIM underpinned Stephens’ decision to raise the price target. The company’s stated 2026 targets - including a higher projected return on assets and a lower efficiency ratio than consensus - are central to the updated view.
WSFS’s aggressive share repurchase activity in fiscal 2025, with a 110% total payout ratio, and management’s guidance to continue buybacks while sustaining loan growth and a roughly 3.80% NIM, will be a focal point for investors assessing capital allocation and earnings durability.
Summary
Stephens raised its WSFS Financial price target to $71 from $66 and kept an Overweight rating after the bank delivered PPNR of $116.5 million, loan growth annualizing 9.2%, a 3.83% NIM, and quarterly EPS and revenue that exceeded estimates. Management projects double-digit EPS growth in 2026, about a 1.40% return on assets and an efficiency ratio in the high 50s, while indicating continued share repurchases and mid-single-digit loan growth alongside a roughly 3.80% NIM.