East West Bancorp's analyst price target was modestly reduced by $0.20 to $125.20, as analysts considered recent updates in revenue growth forecasts, profit margins, and discount rate assumptions.

Analyst Commentary

Analysts recently updated their views on East West Bancorp, reflecting ongoing sector dynamics and company-specific performance. Their insights highlight factors both favoring and challenging the bank's near-term outlook.

• Bullish analysts have raised price targets, citing strong quarterly results and management's ability to consistently exceed expectations. Improved guidance for deposit growth and higher net interest income are viewed as evidence of disciplined execution.
• Revisions to earnings estimates for the upcoming quarters, as well as increased outlooks for earnings through 2026, suggest confidence in the bank's revenue momentum and overall profitability trajectory.
• Higher net interest income projections and upward revisions in total revenue growth signal robust fundamentals. These are supported by effective balance sheet management and favorable industry trends, such as a steepening yield curve and lower short-term rates.
• Sector-wide optimism for midcap and regional banks is driven by constructive macroeconomic conditions, deregulation, and expectations for solid loan and deposit growth. This is seen as creating a supportive environment for valuation recovery.

• Some cautious analysts maintain a hold stance, noting that despite positive earnings revisions, investor sentiment remains tilted toward larger banks. This is partly due to the more apparent deregulation benefits and robust capital markets in that segment.
• While buybacks and lower expenses are viewed positively, there are concerns that the bank's performance is already well-anticipated. This could limit further upside in the absence of new catalysts.
• The pace of improvement in certain metrics, such as loan growth, is being closely monitored. Slower-than-expected acceleration could temper near-term growth prospects.
• Analysts also highlight that while M&A remains a potential catalyst for regional banks broadly, actual deal activity and regulatory clarity will be key to unlocking outsized valuation gains.

What's in the News

• BofA increased its price target on East West Bancorp to $133 from $128, citing another strong quarter and higher forecasts for earnings per share into 2026 (BofA).
• Truist raised its price target to $116 from $112, indicating confidence in higher net interest income, increased fees, lower expenses, and expanded buybacks following the Q3 report (Truist).
• East West Bancorp completed a share repurchase of 258,000 shares for $25 million during Q3 2025, bringing the total to 7.37% of outstanding shares repurchased since 2020 (Key Developments).
• The bank announced Q3 2025 net charge-offs of $18 million, or 0.13% annualized of average loans, up slightly from the previous quarter (Key Developments).
• East West Bank partnered with Worldpay to expand payment solutions for commercial and business customers, enhancing in-store and online transaction capabilities (Key Developments).

Valuation Changes

• Consensus Analyst Price Target edged down marginally from $125.40 to $125.20.
• Discount Rate increased slightly from 6.78% to 6.96%.
• Revenue Growth projection declined modestly from 10.22% to 10.15%.
• Net Profit Margin expanded a touch from 44.17% to 44.30%.
• Future P/E ratio inched up from 13.45x to 13.48x.