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Assessing East West Bancorp: Insights From 7 Financial Analysts

Author: Benzinga Insights | June 24, 2024 02:01pm

East West Bancorp (NASDAQ:EWBC) underwent analysis by 7 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 4 0 0 0
Last 30D 0 1 0 0 0
1M Ago 0 0 0 0 0
2M Ago 1 0 0 0 0
3M Ago 2 3 0 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $90.0, a high estimate of $105.00, and a low estimate of $85.00. This upward trend is apparent, with the current average reflecting a 0.96% increase from the previous average price target of $89.14.

price target chart

Interpreting Analyst Ratings: A Closer Look

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
Jared Shaw Barclays Lowers Overweight $105.00 $106.00
Brandon King Truist Securities Lowers Buy $86.00 $90.00
David Chiaverini Wedbush Maintains Outperform $90.00 $90.00
Andrew Terrell Stephens & Co. Raises Overweight $86.00 $85.00
Christopher Mcgratty Keefe, Bruyette & Woods Raises Outperform $85.00 $82.00
Elan Zanger Jefferies Raises Buy $88.00 $86.00
Brandon King Truist Securities Raises Buy $90.00 $85.00

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to East West Bancorp. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of East West Bancorp compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of East West Bancorp's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into East West Bancorp's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on East West Bancorp analyst ratings.

About East West Bancorp

East West Bancorp Inc is the holding company for East West Bank, a full-service commercial bank with cross-border operations concentrated in the United States and China. East-West Bank is one of a few U.S. based banks with a full banking license in China. The bank's cost strategy has increasingly focused on expanding its deposit base away from time deposits to commercial deposits. The bank has also taken part in entertainment partnerships between participants in China and Hollywood. Most of these efforts include financing the production and distribution of film and television projects. The bank leverages its cultural and regulatory knowledge in the U.S. and China to assist its customers in entering new markets. Most of its earning assets are in loans held for investment.

East West Bancorp: Delving into Financials

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Challenges: East West Bancorp's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -2.81%. This indicates a decrease in 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: East West Bancorp's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 45.11% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): East West Bancorp's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.08%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): East West Bancorp's ROA excels beyond industry benchmarks, reaching 0.41%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.52, East West Bancorp adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: What Are They?

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.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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

Posted In: EWBC