Piper downgrades Washington Trust to Underweight on ‘unattractive’ valuation

As previously reported, Piper Sandler analyst Mark Fitzgibbon downgraded Washington Trust (WASH) to Underweight from Neutral with a price target of $28, down from $29. The firm sees the valuation as unattractive, and notes the company made clear on its earnings call that it doesn’t intend to support the stock with share repurchases. Washington Trust’s earnings stream can be a bit more volatile owing to the rate sensitive nature of its mortgage banking revenues, Piper adds. Lastly, the firm points out that with a dividend payout ratio that is well above peers, capital generation is likely to be slower and limit growth somewhat in the future.