D.A. Davidson reiterates buy rating on Western Alliance Bancorp despite 180% gain in its stock since May trough

D.A. Davidson analyst Gary P. Tenner on Tuesday reiterated a buy rating at $64 a share price target on Western Alliance Bancorp
WAL,
-1.80%
even though the stock has outperformed its peers in recent weeks. “While shares have rallied…we believe the stock valuation does not match the company’s profitability outlook,” Tenner said in a research note. Since hitting a trough in May during the regional-bank crisis that saw the demise of Silicon Valley Bank and two other banks, Western Alliance Bancorp stock has risen 180%, outpacing the 21% gain for the regional bank index. Even with that boost, the stock is still down about 14% so far in 2023. Another plus for the bank is that its deposits have grown after an initial decline after Silicon Valley Bank went bankrupt. Western Alliance Bancorp stock was down 0.6% in premarket trades on Tuesday.