Western Alliance Bancorporation (WAL): Is A Dividend Coming? - Jefferies

September 27, 2016 6:56 AM EDT
Get Alerts WAL Hot Sheet
Price: $49.73 -1.33%

Rating Summary:
    10 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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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.

For an analyst ratings summary and ratings history on Western Alliance Bancorporation click here. For more ratings news on Western Alliance Bancorporation click here.

Shares of Western Alliance Bancorporation closed at $36.57 yesterday.



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