Shares of PacWest Bancorp continued to fall on Monday amid fears of contagion from the Silicon Valley Bank failure, prompting Davidson to say the sell-off represents a more attractive entry point for buyers. . Citing a 54% drop in shares of PacWest on Thursday and Friday, Davidson upgraded the stock to buy from neutral, while lowering its price target to $29 from $31. Shares continued to fall on Monday, dropping another 37% in premarket trading. “With PACW’s financial update largely in line with our Q1 expectations, continued execution of our strategy of shrinking balance sheet, 73% TBV valuation and positive trends reflected Reflecting in our recent update, we think last week’s sell-off presented more of an attraction for investors, especially after the Fed announced its Bank Term Funding Program. (BTFP) on Sunday,” analyst Gary Tenner wrote in a client note on Monday. Tenner noted that the reduction in his price target was due to “recognizing that current market sentiment and the need to justify a change of strategy is likely to remain a limiting factor for pricing in the near term.” Mid-term.” PACW 5D mountain PacWest stock plunged after SVB’s failure. The failure of the Silicon Valley Bank sent shockwaves through tech companies and venture capital firms, many of which deposited their money in now-defunct banks. . Davidson believes that the failure of SVB has the potential to create opportunities for banks to focus on other venture capital in the future. Tenner noted that PacWest’s venture capital-related deposits, which now account for 33% of the company’s total deposits, have fallen 27% since the end of 2021. “We expected that to fail. of SVB will result in other banks operating in the VC space experiencing an increase in customers and deposit repurchase activity and believe the joint decision of the Treasury, the Federal Reserve and the FDIC to prevent blocking Silicon Valley’s uninsured deposits, and Signature could increase the speed and extent of remittances to other institutions,” said Tenner. “While we think most bank management teams will be cautious in how they use new deposits, to the extent that capital flows help stabilize PACW’s total deposit balances, we will see look at that positively,” the analyst added. Shares of PacWest have fallen about 72% over the past 12 months. —Michael Bloom of CNBC contributed to this report.