UPDATE: DA Davidson Raises PT to $10 on Western Alliance Bancorporation on Acquisition

DA Davidson reiterated its Neutral rating on Western Alliance Bancorporation WAL and raised its price target from $9.50 to $10 following the announced purchase of WBLC. DA Davidson commented, "Maintaining NEUTRAL rating and raising price target to $10. Our $10 price target (previously $9.50) represents approximately 12x 2013E EPS and a 1.3 multiple on 2013E TBV of $7.46. … The acquisition of $198.7 million Las Vegas-based Western Liberty Bancorp (WLBC-$3.82) is valued at $55 million with consideration to be 50% cash and 50% stock . WLBC shareholders can either elect to receive $4.02 in cash or 0.4341 WAL shares per share of WLBC. The deal value is below WLBC's $73 million capital base and should be accretive to TBV, even after credit marks are taken on the WLBC loan portfolio." Western Alliance Bancorporation closed at $9.51 on Friday.