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The Analyst Verdict: East West Bancorp In The Eyes Of 8 Experts

Benzinga·07/02/2025 18:14:13
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Across the recent three months, 8 analysts have shared their insights on East West Bancorp (NASDAQ:EWBC), expressing a variety of opinions spanning from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 3 2 0 0
Last 30D 1 0 0 0 0
1M Ago 0 0 0 0 0
2M Ago 1 0 1 0 0
3M Ago 1 3 1 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $104.75, a high estimate of $116.00, and a low estimate of $90.00. This current average has decreased by 7.71% from the previous average price target of $113.50.

price target chart

Investigating Analyst Ratings: An Elaborate Study

The perception of East West Bancorp by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Benjamin Gerlinger Citigroup Raises Buy $116.00 $100.00
David Chiaverini Jefferies Announces Buy $115.00 -
Brandon King Truist Securities Announces Hold $102.00 -
Gary Tenner DA Davidson Lowers Buy $100.00 $118.00
Jared Shaw Barclays Raises Overweight $110.00 $105.00
Timur Braziler Wells Fargo Lowers Overweight $100.00 $120.00
Jared Shaw Barclays Lowers Overweight $105.00 $120.00
Manan Gosalia Morgan Stanley Lowers Equal-Weight $90.00 $118.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to East West Bancorp. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of East West Bancorp compared to the broader market.
  • Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of East West Bancorp's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of East West Bancorp's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on East West Bancorp analyst ratings.

Unveiling the Story Behind East West Bancorp

East West Bancorp Inc operates in U.S. and Asia. The Bank provides range of personal and commercial banking services to individuals and businesses. In addition to offering traditional deposit products that include personal and business checking and savings accounts, money market, and time deposits, the Bank also offers foreign exchange, treasury management and wealth management services. The Bank has three operating segments, (1) Consumer and Business Banking, (2) Commercial Banking and (3) Treasury and Other. The company generates the majority of its revenue from the Commercial banking segment.

East West Bancorp: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Over the 3M period, East West Bancorp showcased positive performance, achieving a revenue growth rate of 8.21% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 42.48%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.71%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): East West Bancorp's ROA excels beyond industry benchmarks, reaching 0.38%. This signifies efficient management of assets and strong financial health.

Debt Management: East West Bancorp's debt-to-equity ratio surpasses industry norms, standing at 0.46. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.