EWBC Stock Forecast & Price Target

East West Bancorp Inc. has demonstrated strong financial performance, with an expected revenue growth of 8% for 2025, indicating robust business expansion prospects. The bank's net interest income (NII) is projected to increase in the second half of 2025, which contributed to upward adjustments in earnings estimates for 2026. Additionally, the company has improved its asset quality by narrowing net charge-offs (NCOs) to a range of 15-25 basis points, demonstrating effective risk management and enhancing investor confidence.

East West Bancorp faces significant risks that could adversely affect its earnings, predominantly stemming from an unexpected increase in credit costs, reduced loan demand, and heightened competition for deposits. These factors indicate a challenging environment for the bank, particularly since the majority of its revenue is generated from the Commercial Banking segment, which may be further pressured by these risks. Additionally, despite broader bank valuations remaining discounted relative to the S&P 500, the specific challenges facing East West Bancorp suggest that it may struggle to capitalize on favorable market conditions in the near term.