KBW Reaffirms Outperform on Western Alliance Bancorporation (WAL) After $300M Buyback

Western Alliance Bancorporation (NYSE:WAL) ranks among the best cheap rising stocks to invest in now. On September 15, Keefe, Bruyette & Woods reaffirmed its $95 price target and Outperform rating on Western Alliance Bancorporation (NYSE:WAL). The bank recently announced a $300 million share buyback program, which represents about 3% of its market market cap. KBW sees the buyback as “an opportunistic tool” that may be used during times of market instability.

The firm made clear that Western Alliance’s primary capital allocation strategy remains organic expansion, even with the buyback authorization. The bank consistently prioritizes growing its core business activities over returning capital to shareholders.

Western Alliance Bancorporation (NYSE:WAL), according to KBW, is “a good vehicle for investors to gain exposure to among banks that benefit from lower rates,” suggesting that the bank is in a strong position as interest rates continue to decline.

Western Alliance Bancorporation (NYSE:WAL) is a bank holding company for Western Alliance Bank, which primarily operates in Arizona, California, and Nevada. The company’s operations are separated into three categories: commercial, consumer-related, and corporate/other.

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Disclosure: None. This article is originally published at Insider Monkey.