On Monday, RBC Capital adjusted its outlook on Western Alliance (NYSE:WAL) Bancorporation (NYSE:WAL), lowering the stock price target to $76 from the previous $78, while retaining an Outperform rating on the stock. The revision follows the company's first-quarter earnings recap, which showed strong fundamental trends, notably robust deposit growth and an improvement in fee revenues.
The analyst from RBC Capital noted that the higher expense trends observed were deemed acceptable and that credit issues were manageable, despite a rise in non-performing assets (NPAs). The firm also took into account the revised guidance for 2024, which now anticipates stronger balance sheet growth coupled with higher expected expense growth.
The updated guidance for Western Alliance Bancorporation suggests a promising trajectory for the improvement of pre-provision net revenue (PPNR). In light of the recent earnings report and future expectations, RBC Capital has made adjustments to its estimates for the company.
Western Alliance Bancorporation's solid deposit growth and fee revenue improvements are seen as key factors supporting the positive outlook. The company's ability to manage credit risk and expenses in the context of its growth strategy was also highlighted in the analysis.
The new stock price target of $76 reflects a slight decrease from the previous target, yet the Outperform rating indicates that RBC Capital continues to view Western Alliance Bancorporation as a stock with potential for above-average returns. The firm's commentary underscores a belief in the company's favorable path forward, despite the adjustments made to the price target.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.