Update shared on26 Sep 2025
Fair value Increased 1.26%Analysts have raised their price target for East West Bancorp to $121.67, citing improved macroeconomic conditions, management's stronger FY25 outlook, and robust earnings quality, alongside attractive relative valuation.
Analyst Commentary
- Bullish analysts cite improving macroeconomic and regulatory backdrops, including ongoing deregulation and increased M&A activity, as drivers of further upside for East West Bancorp and the banking sector broadly.
- Upward price target revisions are supported by the company's increased guidance for FY25 net interest income and total revenue growth, trending toward 10%, in line with or exceeding prior analyst expectations.
- Management meetings and updated guidance have boosted analyst confidence in better-than-anticipated deposit growth and higher net interest income, leading to higher earnings estimates.
- East West Bancorp's recent quarterly earnings have been characterized as "high-quality" with solid fundamentals, while positive commentary on loan growth and a favorable economic outlook further underpin positive sentiment.
- Valuations for mid-cap banks like East West Bancorp remain attractive, with the stock trading at significant discounts to larger peers, and analysts believe the market may be underappreciating an improving operating environment and credit outlook.
What's in the News
- Completed repurchase of 10,250,972 shares (7.18% of outstanding) for $558.74 million under the buyback program announced in 2020, including 25,987 shares for $2.33 million in the latest tranche.
Valuation Changes
Summary of Valuation Changes for East West Bancorp
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $120.15 to $121.67.
- The Net Profit Margin for East West Bancorp has risen slightly from 42.03% to 43.22%.
- The Future P/E for East West Bancorp has fallen slightly from 14.08x to 13.78x.
Disclaimer
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