Wells Fargo downgrades PacWest Bancorp to Equal Weight, lowers target to $26

As previously reported, Wells Fargo analyst Jared Shaw downgraded PacWest Bancorp to Equal Weight from Overweight with a price target of $26, down from $32, as he believes shares are fairly valued at current levels. The current operating environment is not the best for PacWest Bancorp, as asset growth slows, funding costs rise, and internal management focus is concentrated on rebuilding the CET 1 ratio to 10% from the current 8.5%. Additionally, shares typically do not perform well when there are heightened credit concerns, he adds.