Analysts on Wall Street are optimistic on Western Alliance after the bank’s latest deposit update. The bank disclosed in an 8K filing Tuesday that quarter-to-date deposits exceeded $2 billion as of last week, bringing overall deposits to more than $49 billion. Western Alliance’s announcement comes after regional bank peer First Republic’s assets were acquired by JPMorgan Chase earlier this month. Shares of Western Alliance popped more than 9% in the premarket. Regional banks more broadly also rose Tuesday, with the SPDR S & P Regional Banking ETF ( KRE ) climbing 1.5% in premarket trading. Several analysts cheered the update, including Stephens’ Andrew Terrell. “While shares have undoubtedly been volatile QTD, we believe another solid update from WAL should continue to increase investor comfortability around the strength of WAL’s franchise and the go-forward outlook and remain OW-rated,” Terrell, who has an overweight rating on the stock, said in a Wednesday note. The analyst has a $71 per share price target on Western Alliance, which represents about 125% upside from Tuesday’s closing price of $31.59. WAL YTD mountain Western Alliance stock has broken out in recent days, gaining 15% in the last five trading sessions. Jefferies also reiterated its buy rating on Western Alliance, with analyst Casey Haire noting that the bank is beginning to settle into more stable footing. “The update is another data point that demonstrates WAL is distancing itself from recent industry turmoil and should be well received by market,” Haire said. The firm’s $48 per share price target equates to 52% upside. UBS, meanwhile, said the updated deposit data from Western Alliance supports its buy rating. “Given the QTD deposit commentary and the borrowings-related items we discuss below, we view this as another positive update,” UBS analyst Brody Preston said on Tuesday. His price target points to more than 100% upside over the next 12 months. KBW analyst Christopher McGratty, who rates the stock as outperform and has a price target of $60, said he was “encouraged that WAL’s stock is again beginning to trade more on fundamentals (not fear).” Wells Fargo’s Timur Braziler also noted he expects Western Alliance “to be one of the few institutions to not skip a beat in the coming quarters in terms of deposit growth, with management seeing good visibility in growing deposits $2B/qtr in 2023.” Braziler has an overweight rating on the stock and a price target of $65 per share. — CNBC’s Michael Bloom contributed to this report.
