Barclays cuts Western Alliance PT to $90 on elevated credit risk
Barclays cuts regional lender Western Alliance Bancorp WAL.N PT to $90 from $105, implying a 32% upside to stock's last close
Says headline risk around credit will likely continue to weigh on at WAL valuation until there is actual resolution
WAL earlier this month sued investment bank Jefferies Financial JEF.N for not completing a payment of $126.4 million it owed for loans tied to bankrupt auto parts supplier First Brands Group and said it would charge-off for the entire amount
"While the capital impact of both realized and potential losses from high-profile issues such as First Brands/Leucadia and Cantor Group V remains manageable, the initial 2026 net charge-off guidance excluding these items was also higher than that of peers" - Barclays analyst Jared Shaw
As of last close, WAL stock down 18.9% YTD
