Update shared on 08 Dec 2025
Analysts have modestly reaffirmed their outlook on Eastern Bankshares, maintaining the fair value estimate at $21.75 per share. They continue to see stable discount rates, revenue growth, margins, and future valuation multiples supporting the prior target.
What's in the News
- Eastern Bankshares completed its acquisition of HarborOne Bancorp on November 1, 2025, with most HarborOne shareholders opting for stock consideration at a 0.765 EBC share or $12.00 cash election per share (Key Developments).
- HoldCo Asset Management built a roughly 3% stake in Eastern Bankshares and is publicly urging the company to pursue a sale rather than further acquisitions, signaling a potential proxy contest if strategic demands are not met (Key Developments).
- HoldCo has escalated its activist campaign with detailed presentations to Eastern’s board, alleging value destruction from recent M&A and securities restructurings and criticizing executive compensation and governance practices (Key Developments).
- Eastern Bankshares announced a new share repurchase program authorizing buybacks of up to 11.9 million shares, or about 5% of its share capital, valid through October 31, 2026 (Key Developments).
- The company reported completion of 4,803,407 share repurchases for $79.17 million under the buyback plan announced July 25, 2024, with no additional shares repurchased in July 2025 (Key Developments).
Valuation Changes
- Fair Value Estimate: Unchanged at $21.75 per share, indicating no revision to the intrinsic value assessment.
- Discount Rate: Edged down slightly from 6.956 percent to 6.956 percent, effectively stable at prior levels.
- Revenue Growth: Remained essentially flat, holding at about 37.48 percent in the updated model.
- Net Profit Margin: Stayed effectively unchanged at roughly 48.01 percent, reflecting stable profitability assumptions.
- Future P/E: Held steady at approximately 6.59x, suggesting no material change in expected valuation multiples.
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