East West Bancorp, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Manan Gosalia from Morgan Stanley maintained a Hold rating on the stock and has a $111.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Manan Gosalia’s rating is based on a combination of positive and cautionary factors regarding East West Bancorp’s financial performance. On the positive side, the company has shown favorable trends in both assets and liabilities, leading to a beat in net interest income (NII) expectations. The growth in earning assets and effective management of deposit costs have contributed to this positive outcome, with the company even managing to lower deposit costs despite the growth.
However, despite these positive developments, there are reasons for caution that justify a Hold rating. While credit trends have improved, with a decrease in criticized loans and non-performing assets, the macroeconomic environment remains uncertain, as reflected in the slightly increased allowance for loan losses (ALL) ratio. Additionally, while the NII growth outlook for 2025 is strong, the anticipated slowdown in 2026 due to potential rate cuts presents a headwind for the company’s asset-sensitive balance sheet. These mixed signals suggest a balanced approach, warranting a Hold rating.
Gosalia covers the Financial sector, focusing on stocks such as Cadence Bank, M&T Bank, and Huntington Bancshares. According to TipRanks, Gosalia has an average return of 8.6% and a 58.56% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Hold rating on the stock with a $89.00 price target.