Odeon Capital analyst Richard Bove on Thursday initiated coverage of PacWest Bancorp
PACW,
with a hold rating. Although the company remains in a high-risk situation, “fears of this company disappearing may have dissipated so that speculators might wish to continue to hold the stock,” Bove said in a research note. PacWest has stabilized at the moment by selling some assets and buying brokered deposits a rates up to 5.35%, Bove said. The bank may manage to find a buyer for all or part of its business, after it announced recently it was exploring strategic alternatives. “Assuming that it is not hit with more large deposit outflows, it may succeed in its quest although it is possible that the price offered for the company could be a buy-under,” Bove said. PacWest stock was up 2.5% in premarket trades Thursday on top of a 14.4% rally on Wednesday.
