Western Alliance’s Q2 Earnings Review By RBC Capital

RBC Capital analysts raised their price target for Western Alliance Bancorporation (NYSE:WAL) to $87 from $78 while maintaining their Outperform rating on the stock.

The analysts summarized the second-quarter earnings, which were released last week, noting that strong balance sheet growth contributed to modest margin expansion and higher net interest income growth. Core expenses rose at a manageable rate, leading to improved efficiency. Although net charge-offs and provisions increased, credit remained relatively controlled.

Significantly, Western Alliance revised its 2024 revenue guidance upward to reflect stronger balance sheet growth expectations. The analysts believe this outlook supports a positive trajectory for improving pre-provision net revenue (PPNR). Consequently, they adjusted their estimates and increased the price target, reflecting confidence in the company's continued favorable performance.