Western Alliance's Financial Update Disappoints Investors and Analysts
Western Alliance Bancorp's stock fell 10.5% after providing a financial update ahead of its Q1 earnings report, which showed a decline in deposits. Morgan Stanley cut its outlook for midsize banks and suggested Wall Street do the same, citing fund costs, loan growth, fees, expenses, provisions, and capital. However, Baird analyst David George upgraded Zions Bancorp to outperform from neutral, saying the market appears to be pricing in "permanent profitability destruction," which Baird sees as unlikely, leaving "significant upside" in ZION stock.