PacWest Bancorp this weekend provided another intra-quarter update that acknowledged it had initially experienced elevated net deposit outflows, primarily in its venture capital portfolio, but that outflows have "fallen sharply" and with "deposit balance fluctuations substantially stabilizing" since Monday, March 13, Piper Sandler analyst Matthew Clark the analyst tells investors in a research note. The bank has shored up $10.8B in cash that now exceeds its entire uninsured deposit exposure that equates to 38% of total deposits, says Piper. The firm has increased confidence that PacWest can make it through this liquidity crunch now that it has enough cash to cover any additional run-off in uninsured deposits. It expects the shares to "regain some ground" today and keeps an Overweight rating on the shares with a $33 price target.
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