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Investing.com - DA Davidson has raised its price target on East West Bancorp (NASDAQ:EWBC) to $125.00 from $115.00 while maintaining a Buy rating on the stock. The $14.7 billion market cap bank, currently trading at a P/E ratio of 13, has demonstrated strong momentum with a 15% year-to-date return.
The price target increase follows East West Bancorp’s second quarter results, which DA Davidson described as "solidly in line with expectations" with notable strength in loan growth. According to InvestingPro data, eight analysts have recently revised their earnings estimates upward for the upcoming period, reinforcing positive sentiment.
The bank also provided positive revisions to its net interest income and total revenue outlook, along with improved credit metrics and lower full-year net charge-off guidance.
DA Davidson believes East West Bancorp is well-positioned to benefit from a stable economic backdrop, reduced tariff concerns, and the firm’s expectation of a moderate pace of Federal Reserve rate cuts.
The firm maintained its Buy rating on East West Bancorp shares alongside the higher price target of $125.
In other recent news, East West Bancorp reported robust financial results for the second quarter of 2025, exceeding analyst expectations. The company achieved earnings per share of $2.28, surpassing the forecast of $2.25. Additionally, revenue reached $705 million, which was higher than the anticipated $703.43 million. In light of these strong results, Citi adjusted its price target for East West Bancorp, raising it to $124 from $116 and maintaining a Buy rating. Citi’s decision was influenced by stronger-than-expected net interest income performance, which outpaced the bank’s initial guidance. The firm had initially projected net interest income growth of approximately 7% for the year, exceeding the bank’s guidance of 4-6%. These developments reflect the company’s positive financial trajectory and analyst confidence in its performance.
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