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
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