WSFS Financial downgraded to Neutral at Janney Montgomery Scott after Q3 report

As previously reported, Janney Montgomery Scott downgraded WSFS Financial (WSFS) to Neutral from Buy with a fair value estimate of $53, down from $62. Q3 core results met the firm’s bottom line forecast, with the lower provision offsetting higher expenses, but the firm came out of the Q3 report with “more caution” with respect to two primary issues under the backdrop of expected additional Fed easing into 2025 – the recent trend for deterioration in asset quality metrics having persisted in Q3 and the fact that WSFS remains asset sensitive and the firm believes margin pressure could linger into 2025.