UBS analyst Nicholas Holowko has maintained their bullish stance on WAL stock, giving a Buy rating on October 23.
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Nicholas Holowko has given his Buy rating due to a combination of factors that highlight Western Alliance’s strong financial performance and growth potential. Despite concerns regarding exposures to Cantor Group V and the Point Bonita Fund, the bank demonstrated a robust quarter, excluding these specific provisions. The improvement in criticized loans and management’s transparency about these exposures were seen as positive developments.
Holowko noted that the bank’s pre-provision net revenue (PPNR) growth has been significant, with over 30% year-over-year growth in the quarter and 19% year-to-date. The stock is trading at a relatively low multiple of future earnings estimates, suggesting that the market may not fully appreciate its earnings growth potential and improving return on tangible common equity (ROTCE). Adjustments in estimates reflect a balance between slightly lower PPNR and higher provisioning, offset by increased capital returns, supporting the Buy rating.
In another report released on October 23, Barclays also maintained a Buy rating on the stock with a $112.00 price target.
Based on the recent corporate insider activity of 143 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of WAL in relation to earlier this year.