UPDATE: Jefferies Raises PT on Western Alliance to $9

Jefferies is out with its report today on Western Alliance WAL, raising its PT from $8.50 to $9. In a note to clients, Jefferies writes, "WAL's solid 2Q results support our thesis that asset quality and growth prospects remain favorable. SBLF approval remains an unknown, but we believe the stock is compelling even without SBLF approval given the strength of credit recovery and loan growth. Valuation remains reasonable at 1.3x tangible book after a good pop post 2Q results, leaving plenty of upside in our view. Our price target of $9 is established by applying a 13x multiple to WAL's 2012 EPS, which is lower than WAL's historical average P/E multiple." Shares of WAL closed Friday at $7.33, up 4.56% from Thursday's close.