East West Bancorp stock price target raised to $124 from $116 at Citi

Published 23/07/2025, 10:52
East West Bancorp stock price target raised to $124 from $116 at Citi

Investing.com - Citi has raised its price target on East West Bancorp (NASDAQ:EWBC) to $124.00 from $116.00 while maintaining a Buy rating on the stock. The new target represents potential upside from the current price of $108.96, though InvestingPro analysis suggests the stock may be trading above its Fair Value.

The firm cited stronger-than-expected net interest income (NII) performance as a key factor in its decision. Citi’s analyst had originally projected NII growth of approximately 7% for the year, exceeding the bank’s initial guidance of 4-6%.

East West Bancorp has since increased its guidance multiple times since January, though Citi’s projections remain above the bank’s updated guidance of "trending above 7%," with the firm forecasting 8.5% growth.

The analyst noted that while net loan growth continues to support average earning asset growth, deposit pricing management has had a substantial impact on net interest margin trends over the past year.

Citi acknowledged that expense growth related to operational efficiency and back-office expansion for a larger balance sheet will likely impact results this year and next, but believes revenue production should limit any material return on tangible common equity headwinds.

In other recent news, East West Bancorp Inc. reported strong financial results for the second quarter of 2025, exceeding analyst expectations. The company achieved an earnings per share of $2.28, surpassing the forecast of $2.25. Revenue also outperformed projections, reaching $705 million compared to the anticipated $703.43 million. These results reflect a robust performance despite the slight decline in after-hours trading. Additionally, there have been no recent mergers or acquisitions announced by the company. Analyst firms have not issued any new upgrades or downgrades for East West Bancorp at this time. Investors will likely keep an eye on further developments and any future guidance from the company.

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