Western Alliance Bancorporation Confident in Growth, Credit Outlook, RBC Capital Markets Says

MT Newswires Live05-13

Western Alliance Bancorporation's (WAL) management highlighted the growth contributions of its diverse businesses and its confident view of the credit outlook despite some metric changes, while establishing favorable medium-term financial targets at its investor day, RBC Capital Markets said in a note Tuesday.

Analysts said they appreciate that the intentional pacing of different vertical launches has supported consistent growth, with the company posting a 10-year loan compound annual growth rate of about 18% and a deposit CAGR of approximately 20%, ranking among the top of its peer group.

Management maintained the charge-off guidance of 25 basis points to 35 basis points for 2026, excluding fraud, and said it is resolving credits that will support lower non-performing assets in H2 after the disappointing migration of a life science office credit to non-accrual, according to the note.

The brokerage kept its 2026 and 2027 earnings per share estimates at $9.90 and $11.75, respectively.

RBC maintained an outperform rating on Western Alliance with a price target of $89.

Shares of Western Alliance were down 1% in Wednesday trading.

Price: 76.78, Change: -0.78, Percent Change: -1.01

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment