Western Alliance Bancorporation Facing Downgrade from Wells Fargo Analyst
A recent note from Wells Fargo analyst Timur Braziler delivered a blow to the prospects of Western Alliance Bancorporation (NYSE:WAL). Braziler downgraded the regional lender’s stock to Equal Weight from Overweight, citing the company’s latest quarterly results and 2024 guidance as indicators that “leave little room for error.”
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Last week, Phoenix, Arizona-based Western Alliance (WAL) posted Q4 earnings that fell sequentially. Despite this, the company demonstrated “solid loan and deposit momentum, continued net interest income growth, and sustained stable asset quality,” as mentioned by President and CEO Kenneth A. Vecchione.
While being vocal supporters of WAL over the past year, Braziler’s concerns about risk/reward scenarios at the current stock price level have led to the Equal Weight rating. Since the start of 2024, WAL has gained 6.6%, and the analyst’s apprehensions are primarily focused on the company’s 2024 growth outlook for expenses and credit, as well as its underwhelming capital target.
Braziler’s Equal Weight rating aligns with the SA Quant system rating of Hold, but it diverges from the average sell-side analyst rating of Strong Buy. Consequently, the downgraded analysis has led to a 1.5% premarket trading slip for WAL.