East West Bancorp downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded East West Bancorp (EWBC) to Equal Weight from Overweight with a price target of $90, down from $118. The firm moved its midcap bank industry view from Attractive to In-line, saying “higher and faster than expected” tariffs raise recession risks, will weigh on loan growth and in-turn, forward earnings and multiples. The group is “cheap,” but weaker for longer loan growth and inverted yield curve limit upside catalysts, the analyst tells investors in a research note.