UPDATE: Keefe, Bruyette & Woods Upgrades Western Alliance Bancorporation On Operating Leverage

In a report published Monday, Keefe, Bruyette & Woods analyst Brian Klock upgraded the rating on Western Alliance Bancorporation WAL from Market Perform to Outperform, and raised the price target from $27.00 to $28.00. In the report, Keefe, Bruyette & Woods noted, “We are raising WAL shares to Outperform from Market Perform and our target price $1 to $28. We believe sticky and strong loan growth (mid-teens q/q ann'l) and NIM (stable q/q) trends bode well for future top-line growth. On expenses, WAL has achieved a level of operating leverage we didn't expect until mid-'15. We think credit, which has been marked by net recoveries in 4 of the last 5 qtrs, has become a tailwind. We are raising our '14e EPS +10c to $1.66, '15e +21c to $1.89, and '16e +22c to $2.08.” Western Alliance Bancorporation closed on Friday at $23.30.