Western Alliance, the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Ebrahim Poonawala from Bank of America Securities maintained a Buy rating on the stock and has a $102.00 price target.
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Ebrahim Poonawala has given his Buy rating due to a combination of factors that suggest potential upside for Western Alliance’s stock despite recent challenges. The stock has been under pressure following a court filing involving Zions Bancorp, which revealed a lawsuit that WAL is pursuing to recover $100 million. Although this legal issue has contributed to negative sentiment, management has reiterated its fiscal year 2025 outlook, which has helped mitigate some of the stock’s losses.
Despite the negative credit headlines, Poonawala believes that the market is already pricing in significant losses, as evidenced by the stock trading at a discount relative to its earnings and book value. The analyst acknowledges that investor sentiment is cautious due to recent credit concerns, but he maintains a Buy rating, suggesting confidence in the company’s ability to manage its credit risks and improve investor sentiment with effective communication from management.
In another report released today, KBW also maintained a Buy rating on the stock with a $100.00 price target.
Based on the recent corporate insider activity of 132 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.