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Investing.com - Truist Securities has lowered its price target on Western Alliance Bancorporation (NYSE:WAL) to $93.00 from $96.00 while maintaining a Buy rating on the stock. The bank, currently trading at a P/E ratio of 10.6x, is considered undervalued according to InvestingPro analysis, which identifies several growth opportunities despite recent challenges.
The price target adjustment follows Western Alliance’s second-quarter results, prompting Truist Securities to update its financial model for the banking company based on recent earnings and company guidance. The company has maintained solid revenue growth of 10.5% over the last twelve months, though InvestingPro data shows 7 analysts have recently revised their earnings estimates downward.
Truist Securities decreased its 2025 earnings estimate primarily due to higher projected noninterest expenses, specifically citing electronic cash register (ECR) deposit costs as a factor in the adjustment.
The reduced expense outlook was partially offset by expectations for higher net interest income due to a larger balance sheet and increased fee income, according to the research firm’s analysis.
Truist Securities has specifically decreased its 2025 earnings per share estimate by $0.20 to $8.50, representing a 2% reduction, while maintaining its 2026 earnings per share estimate unchanged at $10.60.
In other recent news, Western Alliance Bancorporation reported second-quarter 2025 earnings that exceeded analyst expectations. The company posted an earnings per share (EPS) of $2.07, surpassing the projected $2.02, and revenue reached $845.9 million, above the expected $839.55 million. Despite these positive results, DA Davidson maintained a Buy rating on the stock, raising its price target to $98.00 from $90.00. The firm noted that the strong financial performance was somewhat overshadowed by the increase in Other Real Estate Owned (OREO) assets, although management remains optimistic about resolving these assets without losses. Additionally, Western Alliance announced a leadership transition, with CFO Dale Gibbons set to become Chief Banking Officer in 2026, focusing on developing specialty deposit verticals. The company also reiterated its 2025 guidance for loan and deposit growth and raised its full-year net interest income growth forecast to 8-10%. Western Alliance demonstrated robust growth in net interest income and maintained solid loan and deposit growth targets for the year.
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