Wells Fargo Downgrades Western Alliance, Bank of N.T. Butterfield Amid Market Concerns

Wells Fargo analyst Timur Braziler has downgraded Western Alliance (WAL) from "Equal-Weight" to "Underweight" while raising its price target from $85.00 to $90.00, reflecting caution despite a higher valuation. In contrast, Bank of N.T Butterfield (NTB) was downgraded from "Overweight" to "Equal-Weight" with a lowered price target of $50.00 from $54.00, due to concerns about potential interest rate reductions and an inflated balance sheet. NTB operates primarily in Bermuda, the Cayman Islands, and the UK, providing retail, corporate banking, and wealth management services, and has shown solid financial performance with a 3-year revenue growth of 8.4% and a strong net margin. Multiple analysts have maintained or increased price targets for both banks, but Wells Fargo's recent downgrades indicate heightened caution amid changing market conditions. Investors should note these revisions as they may impact stock performance and future entry points for these financial institutions.