East West Bancorp assumed with Neutral from Buy at UBS

UBS downgraded East West Bancorp (EWBC) to Neutral from Buy with a price target of $112, up from $100, after assuming coverage of the name. The firm says the rising tide of regulatory relief has the potential to lift multiples in the mid-cap bank space. But with the election “essentially unwinding the valuation hangover” from the 2023 regional bank crisis, “stock selection is crucial in 2025,” the analyst tells investors in a research note. UBS thinks the names to own in the current backdrop are those where outsized growth potential, capital optionality, and strategic value are not priced into shares today. Its outlook incorporates a Fed Funds rate of 4% by year-end 2025, and its earnings estimates are in-line with consensus over the next two years.