Western Alliance collects gains in premarket after UBS Buy rating initiation
Mar. 15, 2023 5:43 AM ETWestern Alliance Bancorporation (WAL)By: Khyathi Dalal, SA News Editor4 Comments
- Western Alliance Bancorporation (NYSE:WAL) trades ~7% higher in premarket trade after UBS initiated coverage of the stock with a Buy rating with a price target of $85.
- The rating agency indicates that market was mis-pricing WAL's earnings power.
- Sources of mis-pricing include contagion risk from SVB failure, with shares pricing in something more dire than is fundamentally supportable in a tech or innovation deposit run-off scenario.
- UBS believes that WAL has a strong growth and profitability profile, while credit concerns are overdone.
- After Citadel disclosed a 5.4% stake in Western Alliance, the stock posted a 14% gain in a single day trading.
- Since the SIVB collapse, WAL has seen a 54% drop in stock price (past 5-day trading).
- With a Strong Buy rating, Cavenagh Research recently wrote that WAL has a potential triple-digit upside opportunity for the brave.