In a report released yesterday, Ebrahim Poonawala from Bank of America Securities reiterated a Buy rating on Western Alliance, with a price target of $102.00.
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Ebrahim Poonawala’s rating is based on Western Alliance’s strong third-quarter performance, where the company exceeded earnings expectations due to higher net interest income and fee income, despite increased expenses and credit provisions. The management’s optimistic guidance for fiscal year 2025 revenue further supports the positive outlook, suggesting potential for continued growth.
Despite some credit concerns, particularly related to a lawsuit, the analyst believes the impact will be minimal, supported by insurance coverage. The stock’s valuation appears attractive, trading at a lower price-to-earnings ratio compared to peers, with higher expected earnings growth. This combination of factors underpins the Buy rating, as the stock could outperform by aligning with its earnings growth trajectory.
In another report released today, Barclays also maintained a Buy rating on the stock with a $112.00 price target.
Based on the recent corporate insider activity of 141 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WAL in relation to earlier this year.