WaFd Inc (WAFD) Stock Forecast & Price Target

WaFd is positioned favorably by a stable net interest margin of 2.81%, modest near-term NIM expansion potential over the next 1-2 quarters, and a mix that is already benefiting from higher core loan yields of 5.24% despite funding costs rising to 2.53%. The company’s strategic reverse merger with EverBank should accelerate its shift toward a more commercial, lower-time-deposit funding profile, with commercial loans rising from 64% to 74% and management targeting 15%+ ROATCE, 1.10% ROAA, and a 45% efficiency ratio in 2027. Even with integration risk and an 8.6% TBV dilution, the deal’s 29% expected 2027 EPS accretion, $135M in annual pre-tax cost saves, and strong 2H28 full-integration visibility support a constructive long-term fundamental view.

WaFd is facing weaker fundamentals because loan sales have materially shrunk the balance sheet, with EOP loans down 19% LQA and active loan types down 5% LQA, well below management’s +8-12% guidance. The company also cut FY27/FY28 EPS estimates to $3.22/$3.11 from $3.40/$3.45 due to a smaller balance sheet and higher operating expenses, while its below-average profitability profile is reflected in a PSC ROA of 0.84% in FY27E. Although deposits rose 7.4% LQA, core deposits fell to 60% of the mix, the buyback is on hold pending the EverBank merger, and further downside risks remain from Pacific Northwest economic deterioration and credit quality stress.