Western Alliance Posts Q3 Earnings Miss, Why 5 Analysts Are Still Bullish
Western Alliance Bancorporation (NYSE:WAL) reported mixed earnings for its third quarter on Thursday.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
RBC Capital Markets On Western Alliance Bancorporation
Analyst Jon Arfstrom reiterated an Outperform rating and price target of $99.
Western Alliance reported earnings of $1.80 per share, missing Street expectations of $1.89 per share, Arfstrom said in a note. “In total, this was a decent quarter for the company,” although there were headwinds like higher ECR (earnings credit rates) costs, slower loan growth, and the MSR (mortgage servicing right) change, he added.
Despite this, the analyst stated that the company generated strong revenues of $823 million, beating consensus of $807 million. Western Alliance expects ECR-related deposit balances to decline in the fourth, “which should help meaningfully reduce these costs,” he further wrote.
Stephens On Western Alliance Bancorporation
Analyst Andrew Terrel maintained an Overweight rating and price target of $102.
Western Alliance’s PPNR (pre-provision net revenue) of $282.6 million missed consensus by 7.6%, with a net interest income beat being offset by higher-than-expected expenses, mainly on higher ECR deposit costs, Terrel said.
“Taken at the midpoint, …
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