Piper Sandler keeps an Overweight rating on PacWest Bancorp with a $33 price target after the company released additional details including that it had explored a potential capital raise but decided against it at this time. PacWest’s cash position is up another $600M since this past weekend to $11.4B and still exceeds uninsured deposits, the analyst tells investors in a research note. Piper continues to believe PacWest "can make it to the other side of this liquidity crunch" with its cash position exceeding uninsured deposits, its T1C not materially impacted, and avoiding a dilutive raise. PacWest could shrink the balance sheet in a non-dilutive way in the coming weeks and potentially eliminate the dividend to help shore up additional capital, contends the firm.
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