UBS Group Upgrades East West Bancorp to ‘Buy’ Rating
November 4, 2023
🌥️Trending News
UBS Group has upgraded East West Bancorp ($NASDAQ:EWBC) to a Buy rating, a clear sign of their confidence in the company. East West Bancorp is a financial services company that is headquartered in Pasadena, California. The company provides a wide array of financial services to the community, including commercial and retail banking, online banking, investments, and insurance services. Over the past decade, East West Bancorp has grown significantly, becoming one of the largest independent banks in the United States.
They have also developed strong relationships with local businesses and communities throughout their operational area. The company’s strong commitment to customer service has been recognized by various organizations and publications. With UBS Group now giving East West Bancorp a Buy rating, it’s clear that the company’s sound financial strategies and commitment to its customers are paying off.
Market Price
The stock opened at $53.6 and closed at $53.9, representing a 0.6% increase from the previous closing price of $53.6. UBS analysts cited the company’s strong fundamentals and improving market sentiment as the main reasons behind the upgrade. UBS is expecting the stock to outperform in the coming months and sees EWBC as a long-term investment opportunity. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for EWBC. More…
| Total Revenues | Net Income | Net Margin |
| – | 1.26k | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EWBC. More…
| Operations | Investing | Financing |
| 2.07k | -4.58k | 2.11k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for EWBC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 68.29k | 61.69k | – |
Key Ratios Snapshot
Some of the financial key ratios for EWBC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.7% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale has conducted an analysis on the fundamentals of EAST WEST BANCORP. Our Star Chart analysis of the company indicated that it performs strongly in Growth, Asset, and Dividend, and moderately in Profitability. In terms of financial health, EAST WEST BANCORP earned a score of 8/10 due to its ability to pay off debt and sustain future operations. Furthermore, we classify EAST WEST BANCORP as a ‘gorilla’ company, one that is able to achieve stable and high revenue or earnings growth due to its strong competitive advantage. We believe that such a company could be of great interest to investors. For instance, long-term investors may be attracted by the company’s strong fundamentals and potential for growth, while short-term investors may be inclined to take advantage of the potentially high returns provided by dividends. Ultimately, EAST WEST BANCORP is an attractive investment opportunity for both long-term and short-term investors. More…
Peers
In the banking industry, East West Bancorp Inc faces stiff competition from Bank of East Asia Ltd, Ping An Bank Co Ltd, and Postal Savings Bank Of China Co Ltd. These companies are all vying for market share in the banking industry, and each has its own strengths and weaknesses. East West Bancorp Inc has to carefully strategize in order to maintain its position in the industry.
– Bank of East Asia Ltd ($SEHK:00023)
Bank of East Asia Ltd is a Hong Kong-based banking and financial services company with a market cap of 22.31B as of 2022. The company provides a range of banking and financial services to retail, corporate, and institutional customers through its network of branches and ATMs in Hong Kong, Macau, Mainland China, Taiwan, the United Kingdom, and the United States.
– Ping An Bank Co Ltd ($SZSE:000001)
As of 2022, Ping An Bank Co Ltd has a market cap of 217.35B. The company is a leading provider of banking and financial services in China. It offers a wide range of products and services, including deposits, loans, credit cards, foreign exchange, and wealth management. The company has a strong presence in both the retail and corporate banking markets. It has a nationwide network of branches and ATMs, and a growing online and mobile banking business. The company is well-positioned to benefit from the continued growth of the Chinese economy.
– Postal Savings Bank Of China Co Ltd ($SEHK:01658)
Postal Savings Bank of China Co., Ltd. operates as a savings bank in China. The Bank offers personal savings, time deposit, and loan products, as well as foreign exchange, settlement, and other related services. Postal Savings Bank of China Co., Ltd. was founded in 2007 and is headquartered in Beijing, China.
Summary
East West Bancorp, a financial services company, recently received an upgrade from UBS Group to a “Buy” rating. Analysts cite the company’s strong balance sheet, dividend payout, and strong capital return levels as primary reasons for the upgrade. Furthermore, the company’s loan portfolio and new deposit accounts are growing significantly, indicating further positive momentum. East West Bancorp is expected to benefit from continued positive economic conditions and a favorable interest rate environment.
The company’s loan portfolio has also diversified across multiple asset classes, providing further stability and growth potential. Overall, investors should consider investing in East West Bancorp for its long-term potential.
