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Investing.com - TD Cowen has reiterated its Buy rating on Western Alliance Bancorporation (NYSE:WAL) with a price target of $118.00, according to a recent analyst note. Currently trading at $78.85, the bank stock has attracted strong analyst attention, with 7 analysts recently revising earnings estimates upward. According to InvestingPro data, analyst targets range from $90 to $118, suggesting significant upside potential.
The firm’s assessment follows Jefferies’ Sunday evening letter that addressed Point Bonita’s structure and redemption plan, which TD Cowen believes indicates limited potential losses to Western Alliance tied to First Brands.
TD Cowen noted that while not conclusive, the disclosure provides new clarity suggesting Western Alliance’s exposure is likely well protected.
The firm specifically pointed out that all of Point Bonita’s debt appears to be "far more than fully covered" by non-First Brands assets, based on the Jefferies letter.
This reaffirmation maintains TD Cowen’s previous positive stance on Western Alliance Bancorporation amid concerns about its exposure to First Brands.
In other recent news, Western Alliance Bancorporation has made several strategic announcements that could impact investors. The company has introduced a new Western Alliance Private Client Group aimed at serving high-net-worth individuals with tailored banking solutions, led by industry experts John Maguire and Dean Indot. Additionally, Western Alliance has initiated a $300 million share buyback program, which represents about 3% of its market capitalization, as confirmed by Keefe, Bruyette & Woods (KBW) who reiterated an Outperform rating and a $95 price target for the company. Meanwhile, Truist Securities has adjusted its price target for Western Alliance to $93, maintaining a Buy rating, following the bank’s second-quarter financial results.
Further expanding its leadership team, Western Alliance Bank appointed Jake Smith as director within its Public and Nonprofit Finance Group, where he will focus on capital solutions for municipal and nonprofit borrowers. These developments reflect the bank’s ongoing efforts to enhance its service offerings and financial strategies. The bank, which manages over $85 billion in assets, emphasizes that its share repurchase program will be executed through various market transactions without a set expiration date. These initiatives highlight Western Alliance’s commitment to growth and strategic financial management.
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