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Investing.com - DA Davidson raised its price target on Western Alliance Bancorporation (NYSE:WAL) to $98.00 from $90.00 on Monday, while maintaining a Buy rating on the stock. Currently trading at $81.92, the bank’s shares are showing signs of being undervalued according to InvestingPro Fair Value metrics, with a P/E ratio of 11.12x.
The bank’s shares underperformed on Friday, July 18, despite reporting earnings per share and pre-provision net revenue per share that exceeded expectations. The company has maintained profitability over the last twelve months, with revenue growing 10.46% year-over-year.
DA Davidson noted that the positive financial results were overshadowed by significant growth in Other Real Estate Owned (OREO) assets, even though management expressed confidence in resolving these assets without incurring losses.
The firm also highlighted that Western Alliance announced a leadership transition, with CFO Dale Gibbons moving to the Chief Banking Officer role effective January 1, 2026, where he will focus on developing specialty deposit verticals.
Despite these concerns, DA Davidson maintained its Buy rating on Western Alliance stock, raising its price target by $8 to $98. Analyst targets currently range from $85 to $105, with a consensus recommendation leaning strongly toward Buy. For deeper insights into analyst forecasts and detailed financial metrics, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Western Alliance Bancorporation reported its second-quarter 2025 earnings, exceeding analyst projections with an earnings per share (EPS) of $2.07, compared to the expected $2.02. The company’s revenue also surpassed expectations, reaching $845.9 million against a forecast of $839.55 million. Western Alliance’s net interest income grew by 7.2% quarter-over-quarter to $698 million, while the net interest margin expanded by 6 basis points to 3.53%. The company maintained its loan and deposit growth targets for 2025, aiming for $5 billion in loan growth and $8 billion in deposit growth. Additionally, Western Alliance raised its full-year net interest income growth guidance to 8-10%. Despite these positive financial results, the company’s stock experienced a decline, which was not directly related to the earnings report. The bank also announced a CFO transition, with Dale Givens moving to lead deposit initiatives and Vishal set to assume the CFO role in the fourth quarter of 2025.
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