Investors should hold shares of the Western Alliance regional bank, according to Wells Fargo. The company reiterated its overweight rating on the stock, while lowering its price target to $65 from $90. Still, the new price target represents a 148.9% upside from Monday’s closing price of $26.12. “We see the risk/reward as attractive here for WAL with the stock trading at 60% of [tangible book value] and come away with a renewed sense of optimism after our conversation with [management],” analyst Timur Braziler wrote in a note on Friday. “Mgt. update on 3/9 had total deposits increase impressively $7.8B, or 15% Q / Q, and the update there shows only ‘moderate’ outflow since.” Western Alliance shares declined 47% on Friday as part of the massive selloff of regional bank shares after failure of SVB Financial and Signature Bank, Braziler, however, thinks that the deposit balance Western Alliance more quarter-to-date is not relevant until the deposit tumble over 60% since March 8 and views. The deposit has been “thrown out with the bathwater,” said Braziler. “WAL got lumped with banks with a heightened understanding of the risk given its exposure to the private market and Street analysis is wrong from the exposure to uninsured deposits. Wells Fargo considers Western Alliance one of the “most diversified banks from a product offering and geographic standpoint,” giving it confidence that it will do better amid the volatility and interest rate hikes fueled by SVB. “Management continues. to prove the ability to operate among the fastest-growing banks with excellent credit quality regardless of the operating environment. We expect WAL to be one of the few institutions that cannot beat in the coming quarters, with management seeing good visibility for increase deposits by 13-17% in 2023,” wrote Braziler. Western Alliance shares rose 18.2% in premarket trading on Tuesday Shares are down 56.1% year to date – CNBC’s Michael Bloom contributed to this report.