Western Alliance stock hit by negative headlines, says BofA

Western Alliance (WAL) shares are under pressure following news that the bank has an ongoing $100M lawsuit against the same defendants named in Zions Bancorp’s (ZION) recently disclosed case, BofA tells investors in a research note. While the apparent fraud cases are unrelated to Tri-color or First Brands, sentiment remains cautious amid heightened credit concerns and two negative headlines in quick succession, and BofA says management will need strong communication on credit risk next week to restore confidence, though the current sell-off appears to already price in significant potential losses. BofA has a Buy rating and $102 price target on Western Alliance shares.