Western Alliance undervalued at 8x earnings despite strong loan growth and solid capital, with 20-25% upside potential.

Western Alliance is trading at a low valuation of 8 times adjusted earnings despite showing strong loan growth and maintaining a robust capital position. Its deposit base is valuable, with a high proportion of noninterest-bearing deposits and a healthy loan-to-deposit ratio that supports margin expansion. While there are ongoing concerns about credit quality, recent charge-offs seem manageable and the bank's capital reserves, though low, are balanced by a strong CET1 ratio of 11%. The analyst maintains a "Buy" rating with a target price of $100 per share, expecting a 20-25% upside as current prices already factor in credit risks.