
WAL Stock Forecast & Price Target
WAL Analyst Ratings
Bulls say
Western Alliance Bancorporation is projecting a modest increase in net interest income (NII) by 1%, alongside an expansion in adjusted net interest margin (NIM) to 2.58%, attributed to lower customer service costs. The company anticipates profitability enhancements through ongoing growth in pre-provision net revenue (PPNR), decreased deposit costs, and an upswing in mortgage banking revenue, which is not yet reflected in their fiscal year 2025 guidance. Additionally, fee growth is expected to rise by 6-8% to between $576 million and $586 million, bolstered by improved opportunities in commercial banking and stable mortgage revenue, further supporting a positive outlook on the company’s financial performance.
Bears say
Western Alliance Bancorporation is facing significant challenges, highlighted by a seasonal deposit decline of $1.7 billion largely due to a $5.8 billion drop in mortgage warehouse deposits, with only partial offsets from regional banking and specialty escrow services. Net interest income (NII) decreased by 4% quarter-over-quarter, accompanied by weaker asset yields that have contributed to a narrowing net interest margin (NIM) of 3.48%. Additionally, the company's outlook remains strained by the potential volatility surrounding anticipated de-regulation and the inherent risks tied to mergers and acquisitions, which could further pressure valuations if projected growth metrics fail to materialize.
This aggregate rating is based on analysts' research of Western Alliance Bancorporation and is not a guaranteed prediction by Public.com or investment advice.
WAL Analyst Forecast & Price Prediction
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