
WAL Stock Forecast & Price Target
WAL Analyst Ratings
Bulls say
Western Alliance Bancorporation has demonstrated a positive outlook, highlighted by a 1% increase in net interest income (NII) and a slight expansion in adjusted net interest margin (NIM) to 2.58%, driven by reduced ECR customer service costs. The bank is poised for improved profitability as it anticipates growth in pre-provision net revenue (PPNR) from organic avenues, along with a notable potential rise in mortgage banking revenue not included in its fiscal year 2025 guidance. Additionally, the company projects fee growth of 6-8%, amounting to $576 million to $586 million, supported by robust commercial banking opportunities and stable mortgage revenue, with overall loan growth reflecting an increase of $5.0 billion in held-for-investment (HFI) loans.
Bears say
Western Alliance Bancorporation experienced a significant seasonal decline in deposits, dropping by $1.7 billion due to a decrease in mortgage warehouse funding, which was only partially offset by gains in specialty escrow services and regional banking. The reported net interest income (NII) decreased by 4% quarter-over-quarter, accompanied by a contraction in the net interest margin (NIM) to 3.48%, reflecting lower asset yields across various lending and investment products. Additionally, uncertainties surrounding the anticipated benefits of de-regulation and potential mergers and acquisitions pose significant risks to the company's growth projections and overall valuations, suggesting a challenging outlook for the stock.
This aggregate rating is based on analysts' research of Western Alliance Bancorporation and is not a guaranteed prediction by Public.com or investment advice.
WAL Analyst Forecast & Price Prediction
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