East-West Bancorp (EWBC) Thoughts After Management Meeting - Piper Jaffray

Piper Jaffray analyst, Matthew Clark, reiterated his Overweight rating on shares of East West Bancorp (NASDAQ: EWBC) after meeting with CEO Dominic Ng & CFO Irene Oh which offered comfort into growth prospects & the NIM outlook.

The analyst stated "We believe a greenfield opportunity exists on the cross border front with relatively new product capabilities & a disciplined focus on industry verticals that support a double digit growth outlook. We also feel more confident in its core NIM guidance (3.75-3.80%) with CD promos below its prior offerings, more incentives to grow lower cost deposits & new initiatives to gain more share of the wallet. Shares look cheap at only 10x our '19E / '20E EPS of $5.10 / $5.40 (unch) for a franchise generating top-tier ROTCEs of 16-17% & ROA of 1.70%".

No change to the price target of $76 which is 45% above the current share price.

For an analyst ratings summary and ratings history on East West Bancorp click here. For more ratings news on East West Bancorp click here.

Shares of East West Bancorp closed at $52.50 yesterday.

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