According to JPMorgan, Western Alliance has put the regional banking crisis of spring in the rearview mirror and should be able to sustain the recent recovery momentum. Analyst Steven Alexopoulos raised his price target for Western Alliance from $53 to $60 a share, saying in a note to clients Thursday that the stock has a “significant upside” after the bank’s second-quarter earnings report revealed recovering fundamentals. “The company showed signs that, not only was the worst of the March banking crisis in the rearview mirror, but the company’s deposit growth for the quarter was also driven in part by about a third of the deposits remaining in the March events that have now returned to banks,” Alexopoulos wrote. The bank reported deposit growth of $3.5 billion in the second quarter and said it expects to add $4 billion in deposits by the end of the year. Investors cheered the results, even though earnings per share of $1.96 were slightly below the median estimate of $1.97, according to FactSet’s StreetAccount. Shares of the bank rose more than 7% on Wednesday after the report was released. Mount WAL 5D Western Alliance stock rallied on Wednesday. But even with that rally, stocks are still down about 37% from where they ended in February, before the regional banking crisis. Shares fell more than 50% in March, and then fell below $20 a share in early May following the debacle of the First Republic. That means the stock still has room to run, according to JPMorgan. The company’s new price target represents a nearly 30% gain from Western Alliance’s stock price closing on Wednesday. “Despite WAL stock performing better QoQ (as well as over the past few months), WAL’s 2023 implied cost of equity is still very high relative to its peers (18.0% vs 12.7% peers) even if Q2 23 is likely to be the lowest for the company. [net interest income/net interest margin]. As a result, we continue to see this stock remain severely mispriced,” wrote Alexopoulos. — CNBC’s Michael Bloom contributed to this report.