Western Alliance Bancorporation (WAL): Is A Dividend Coming? - Jefferies
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Jefferies analyst, Casey Haire, reiterated his Buy rating on shares of Western Alliance Bancorporation (NYSE: WAL) and wonders if a dividend is coming since M&A is off the table.
The company has a strong capital ratio (9.1% TCE), robust organic capital generation (17% tangible ROE) and with M&A activity unlikely, the analyst believes WAL has the capacity to implement a dividend. An analysis shows that implementing a 10%-20% dividend payout ratio would provide some yield (0.8%-1.6%) and still enable WAL to build upon already strong capital ratios. If management opts to hoard capital, then WAL will possess a large capital buffer into the next credit cycle.
No change to the price target of $42.
Shares of Western Alliance Bancorporation closed at $36.57 yesterday.
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