PacWest Bancorp has weathered a large withdrawal in deposits, and regional bank stocks are now set to rebound, according to Piper Sander. Analyst Matthew Clark reiterated his overweight rating on the stock in a note Wednesday afternoon, saying the company appears to be on solid footing despite recent deposit outflows. “We continue to believe that PACW can come out on the other side of this liquidity crisis with a cash position in excess of uninsured deposits, [tier 1 capital] not materially impacted, and avoid dilutive raises,” said the note. PacWest is one of several regional banks that saw deposits withdrawn by customers after the failure of Silicon Valley Bank. Shares of PacWest dropped 17% to $10.12 per share on Wednesday after the update the company’s latest, which shows that it has lost more than $6 billion in deposits since March 9. Most of the outflows appear to have come from the company’s venture banking business. Deposits are down more than 60% month to date. . The company also said on Wednesday that deposits have stabilized and has decided to raise capital. Piper Sandler has a price target of $ 33 per share for PacWest, which is more than 200% above where the stock closed on Friday. To be sure, there will be some impact earnings from deposit outflows, Clark wrote. This deposit was trading above $ 40 per share a year ago. hun for $27B, we believe it is fair to say that PACW’s balance sheet will likely be much smaller in the coming quarters as it finally unwinds the excess liquidity position. We don’t think PACW should raise dilutive capital because it deliberately shrinks the balance sheet, but it remains a risk for whether PACW’s earning power will eventually be seen on the other side,” said the note. – CNBC’s Michael Bloom contributed to this report.