WaFd downgraded to Neutral from Buy at DA Davidson

DA Davidson analyst Jeff Rulis downgraded WaFd (WAFD) to Neutral from Buy with a price target of $32, down from $35. The cites the company’s “sizable strategic pivot,” fiscal Q1 earnings miss and below-peer profitability outlook for the downgrade. The bank’s exit from the single family residence mortgage business is well-founded, but distractions and headwinds are likely in the short run, the analyst tells investors in a research note. DA believes WaFd did not clearly communicate its operational results, which will drive diminishing investor confidence.