East West Bancorp price target lowered to $93 from $96 at Truist

Truist analyst Brandon King lowered the firm’s price target on East West Bancorp to $93 from $96 and keeps a Buy rating on the shares as part of a broader sector note on Banks adjusting the firm’s model following the start of the Fed rate-cutting cycle. The firm’s new estimates reflect updated interest rate forward curve assumption of 100bps of rate cuts during 2024 and 100bps in 2025, though its industry outlook balances healthy EPS growth expectations and historically discounted valuations against November election risks and lingering rate path uncertainty, the analyst tells investors in a research note. Truistadds that the liability sensitive trade makes fundamental sense on the surface, though it also cautions that a shallower cutting cycle could be a positive catalyst for discounted asset sensitive or growth names.