HoldCo's Activist Campaign Might Change The Case For Investing In Eastern Bankshares (EBC)

• On October 31, 2025, HoldCo Asset Management publicly released a presentation to Eastern Bankshares' independent Board of Directors urging the company to consider selling itself, criticizing recent acquisitions, securities restructurings, and capital allocation, and raising concerns about governance and executive compensation.
• This activist campaign alleges value destruction at a scale larger than Eastern's current market capitalization and challenges the independence of the board and the incentives of company leadership.
• We'll examine how HoldCo's activist intervention and pressure for strategic change influence Eastern Bankshares' future investment narrative.

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Eastern Bankshares Investment Narrative Recap

To be a shareholder in Eastern Bankshares today, you need to have confidence in the company’s ability to integrate its recent acquisitions and realize the expected benefits from expanding in its regional markets. The most significant near-term catalyst is the successful integration of HarborOne Bancorp, while the biggest risk remains asset quality concerns tied to commercial real estate exposure. The recent HoldCo activism intensifies debate on board governance, but its impact on short-term fundamentals appears limited for now.

Among the recent announcements, the share repurchase program authorizing the buyback of up to 11,900,000 shares stands out, especially as activist pressure mounts. While repurchases can signal management’s confidence, they intersect with ongoing discussions about capital allocation and the company’s longer-term strategic path.

In contrast, what may matter most for investors is the persistent risk tied to commercial real estate loan reserves that could ...

Read the full narrative on Eastern Bankshares (it's free!)

Eastern Bankshares is projected to achieve $1.1 billion in revenue and $434.1 million in earnings by 2028. This outlook reflects an annual revenue growth rate of 21.2% and an earnings increase of $343.8 million from its current earnings of $90.3 million.

Uncover how Eastern Bankshares' forecasts yield a $22.00 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members set fair values between US$21.75 and US$22 across two analyses just before the latest activist campaign. As market opinions vary, the catalyst of a large merger integration may drive very different future outcomes, see how other investors view these possibilities.

Explore 2 other fair value estimates on Eastern Bankshares - why the stock might be worth as much as 25% more than the current price!

Build Your Own Eastern Bankshares Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Eastern Bankshares research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Eastern Bankshares research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Eastern Bankshares' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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