Forecasting The Future: 6 Analyst Projections For Western Alliance

During the last three months, 6 analysts shared their evaluations of Western Alliance WAL, revealing diverse outlooks from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Western Alliance, presenting an average target of $99.0, a high estimate of $116.00, and a low estimate of $80.00. A 4.5% drop is evident in the current average compared to the previous average price target of $103.67.

Investigating Analyst Ratings: An Elaborate Study

A comprehensive examination of how financial experts perceive Western Alliance is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Andrew Terrell |Stephens & Co. |Maintains |Overweight | $92.00|$92.00 | |Timur Braziler |Wells Fargo |Lowers |Equal-Weight | $80.00|$95.00 | |Jared Shaw |Barclays |Lowers |Overweight | $97.00|$107.00 | |Matthew Clark |Piper Sandler |Raises |Overweight | $116.00|$115.00 | |Gary Tenner |DA Davidson |Lowers |Buy | $106.00|$110.00 | |Andrew Terrell |Stephens & Co. |Maintains |Overweight | $103.00|$103.00 |

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Western Alliance. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Western Alliance compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Western Alliance's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Western Alliance's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Western Alliance analyst ratings.

Unveiling the Story Behind Western Alliance

Western Alliance Bancorporation is a Las Vegas-based holding company with regional banks operating in Nevada, Arizona, and California. The bank offers retail banking services and focuses on mortgages for retail customers and commercial loans. The company's reportable segments are Commercial segment includes provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry. Consumer Related segment offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking and Corporate & Other.

Western Alliance's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Western Alliance's revenue growth over a period of 3M has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 22.4%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Western Alliance's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 25.57%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.34%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Western Alliance's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.27%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Western Alliance's debt-to-equity ratio surpasses industry norms, standing at 1.03. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.