Amcor stock falls after Raymond James reiterates Market Perform rating
On Friday, Citi analysts increased their price target on Western Alliance Bancorporation (NYSE:WAL) shares to $112 from the previous target of $102, while reiterating a Buy rating on the stock. The revision follows Western Alliance’s fourth-quarter results and its outlook for 2025. The $9.75 billion market cap bank, which has delivered an impressive 42.7% return over the past year, is well-positioned to achieve $5 billion in loan growth even if the current slow pace of loan growth continues. According to InvestingPro data, the bank trades at a P/E ratio of 12.75 and is currently trading near its Fair Value. They suggest that an improvement in national loan growth trends could lead to even greater loan growth and net interest income (NII) for Western Alliance.
The analysts also pointed out that the shift in the mix of Earning Credit Rate (ECR) deposits, along with a lower rate, is likely to support a stable or declining expense base in 2025, which could result in higher pre-provision net revenue (PPNR) in the upcoming quarters. Despite some investor skepticism regarding commercial real estate (CRE) credit trends, Citi’s analysts are confident in the bank’s loan growth and anticipate a loan loss provision expense driven by this growth. InvestingPro analysis reveals strong revenue growth of 18% in the last twelve months, though it also flags that six analysts have recently revised their earnings expectations downward.
Citi’s revised price target reflects optimism about Western Alliance’s ability to manage its loan growth and expenses effectively. The analysts’ commentary underscores their belief that the bank has preemptively addressed potential credit challenges, positioning it for financial success in the near future. This positive outlook is based on the bank’s strategic management of its loan portfolio and expense base, which are expected to contribute to its performance in the coming years. For a deeper understanding of Western Alliance’s financial health and growth prospects, investors can access comprehensive analysis and additional insights through InvestingPro, which offers detailed research reports and real-time metrics for over 1,400 US stocks.
In other recent news, Western Alliance Bancorporation has been a topic of interest among analysts, with DA Davidson adjusting its price target for the company from $110.00 to $106.00, while maintaining a Buy rating. Despite a recent rise in nonperforming assets (NPAs), resulting in a provision for credit losses of $60 million, the company continues to demonstrate strong fundamentals, with a 17.96% revenue growth over the last twelve months. DA Davidson remains optimistic about Western Alliance’s long-term prospects, anticipating a positive earnings per share (EPS) trajectory throughout the year and maintaining its 2025 EPS estimate of $8.70.
Furthermore, Western Alliance reported solid financial results, outperforming analyst expectations with earnings per share of $1.95, surpassing the consensus forecast of $1.91, and revenue of $838.4 million, exceeding the projected $805.14 million. The company’s net income for the quarter was $216.9 million, marking a 46.7% increase from the same period last year, propelled by a rise in both net interest income and non-interest income.
In addition to the strong financial performance, the bank’s recent guidance for 2025 projects over $5 billion in loan growth, more than $8 billion in deposit growth, and revenue growth ranging from 6% to 8%. These recent developments underscore Western Alliance’s continued growth and profitability trajectory, which is further enhanced by the bank’s consistent track record of raising its dividend for six consecutive years.
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