PacWest Bancorp cut to Hold at Truist on greater downside revenue risk

Truist analyst Brandon King downgraded PacWest Bancorp to Hold from Buy with an unchanged $26 price target as part of a broader research note on Banks. The company has greater downside revenue risk relative to peers from his forecast of higher funding costs, slower balance sheet growth, and risk of Fed rate cuts in the second half of 2023 or in 2024, the analyst tells investors in a research note. PacWest’s pre-provision net revenue will decline by 4% in 2024 as there are fewer levers to reduce expenses, relative to peers, with planned investments in digital and innovation initiatives, King adds.