Truist Securities lowered its price target on East West Bancorp (NASDAQ:EWBC) to $120 from $121, while maintaining a Hold rating.
The firm updated its financial model to reflect a modestly higher net interest income outlook for 2027, supported by a larger balance sheet, with average earning assets projected to reach $88 billion by the fourth quarter of 2027.
Despite the bank's asset sensitivity, net interest margin was expected to remain largely unchanged, as management is likely to prioritize balance sheet growth over margin expansion.
Loan growth estimates were increased to 7% for 2026 and 8% for 2027 on a year-over-year basis. Projections for fees, expenses, and credit provisioning remained broadly unchanged.
The firm also incorporated increased share repurchases into its model, reflecting higher buyback activity in the first half of 2026, supported by a lower average share price of approximately $113 in the first quarter.
As a result, Truist slightly raised its 2026 EPS estimate to $10.35 and its 2027 EPS forecast to $11.25.
The revised price target is based on a 10.7x multiple applied to the firm's 2027 EPS estimate.
