Is Western Alliance (WAL) One of the Best American Bank Stocks to Buy?

Western Alliance Bancorporation (NYSE:WAL) is one of the 11 Best American Bank Stocks to Buy According to Wall Street Analysts. On March 9, Wells Fargo upgraded its rating on Western Alliance Bancorporation (NYSE:WAL) from Underweight to Equal Weight but reduced its price target from $83 to $79 on the stock.

Analyst Chris Spahr pointed to the company’s new chief financial officer, who has been in the role for about two months. Spahr believes the CFO is showing a strong understanding of the bank’s financials and has brought valuable experience from two decades at JPMorgan Chase & Co. (NYSE:JPM). The analyst also noted that the CFO has given reassurance about Western Alliance Bancorporation’s (NYSE:WAL) current reserves for asset-based loan exposures that recently caused some losses.

Despite the upgrade, Wells Fargo expressed some concerns about $3 billion of private credit loans compared to $7 billion in tangible common equity. The firm also noted that the bank recently faced an unexpected loss, which Western Alliance Bancorporation (NYSE:WAL) said is the reason it continues to hold extra capital.

The research firm noted that Western Alliance Bancorporation (NYSE:WAL) is working to “contain” the impact on earnings by taking actions in asset-liability management, such as a securities sale, cutting costs to improve efficiency, and focusing on new growth initiatives. Wells Fargo pointed out that the company “seems to be managing for outcomes, possibly at the expense of economic value.”

Western Alliance Bancorporation (NYSE:WAL) is an American banking company with Western Alliance Bank as its primary subsidiary. The bank is known for its tailored business banking solutions and consumer products.

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