In a report released today, Laurie Havener from Seaport Global upgraded HarborOne Bancorp (HONE – Research Report) to a Buy, with a price target of $16.00.
Laurie Havener’s rating is based on the strategic acquisition of HarborOne Bancorp by Eastern Bankshares, which is seen as beneficial for both entities. Despite the current weaker M&A market, the timing of this deal is considered advantageous as it allows HONE to sell at book value to a larger bank with a stronger currency, which is particularly sensible given the economic uncertainties fueled by global trade tensions.
Furthermore, the acquisition strengthens Eastern Bankshares’ position in the Boston metropolitan area, making it the fourth-largest bank in the region. The deal not only enhances Eastern Bankshares’ market presence but also expands its reach into the Rhode Island market. As a result of these strategic benefits, Laurie Havener has upgraded the rating for HarborOne Bancorp to Buy, reflecting the positive outlook for the combined entity’s future performance.