UPDATE: D.A. Davidson & Co. Reiterates Neutral Rating, Raises PT on Western Alliance Bancorporation as Loan Production and Credit Remain Key EPS Drivers

In a report published Monday, D.A. Davidson & Co. analyst Gary P. Tenner reiterated a Neutral rating on

, and raised the price target from $19.00 to $23.00. In the report, D.A. Davidson & Co. noted, “Maintaining NEUTRAL and raising price target to $23. We are raising our target from $19 to $23 in light of our higher EPS estimates for 2013 and 2014, WAL's improving asset quality, and the expansion of bank sector multiples that are continuing to reflect expectations of an eventual Fed tightening. Our price target represents a 2.5x multiple on estimated 2014 year end TBV of $9.28, supported by WAL's projected 13% ROE for 2014. WAL reported EPS of $0.32, $0.01 above our estimate and in line with the Street mean estimate. The quarter included a $0 loan loss provision compared to our $3.6 million estimate, adding $0.03 to EPS. Merger charges and investment losses accounted for a $0.02 negative impact in the quarter.” Western Alliance Bancorporation closed on Friday at $20.87.