Benzinga - Shares of Western Alliance Bancorporation (NYSE: WAL) took a beating on Monday, as did other banking stocks, after the Silicon Valley Bank failure.
The bank’s mid-quarter update shows strong financials, according to Wedbush.
The Western Alliance Bancorporation Analyst: David Chiaverini maintained a Neutral rating on Western Alliance Bancorporation and a price target of $80.
The Western Alliance Bancorporation Thesis: The most notable takeaway from the bank’s update is the strong deposit growth since yearend, “showcasing the benefits of having a diversified deposit base,” Chiaverini said in the note.
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Deposits have grown $7.8 billion since yearend, “compared to our forecast of +$4.0 billion, driven by increases in settlement services, HOA, and mortgage warehouse,” the analyst stated.
The bank also reaffirmed is fiscal 2023 deposit growth guidance of 13%-17%, “which is well above peers in the current environment,” he added.
WAL Price Action: Shares of Western Alliance Bancorporation had risen by 40.28% to $36.64 at the time of publication Tuesday.
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