A Look At Eastern Bankshares (EBC) Valuation As Earnings Expectations Are Raised

What is driving fresh interest in Eastern Bankshares?

Recent upward revisions to earnings per share estimates for Eastern Bankshares (EBC), along with forecasts for higher quarterly earnings and revenue, have put the stock on the radar for investors who are watching expectations.

Analysts are currently looking for a 20.6% year over year increase in earnings and a 25.1% rise in revenue for the upcoming quarter. Those projections have been adjusted higher over the past month.

See our latest analysis for Eastern Bankshares.

At a share price of $19.37, Eastern Bankshares has seen a 3.1% 30 day share price return and a 14.1% 1 year total shareholder return, suggesting gradually improving momentum alongside the recent earnings revisions and management moves, such as the appointment of a new asset based lending executive.

If you are weighing EBC against other opportunities in financials, it could be a good moment to broaden your watchlist with solid balance sheet and fundamentals stocks screener (None results).

With EBC trading at $19.37 and sitting about 16% below the average analyst price target, plus an indicated intrinsic discount, you have to ask: is this a genuine value gap, or is the market already factoring in that expected growth?

Most Popular Narrative: 13.6% Undervalued

Eastern Bankshares’ most followed narrative points to a fair value of US$22.42 versus the last close at US$19.37, framing the current debate around an implied discount driven by merger benefits, digital expansion and modeled profitability.

The successful merger with Cambridge Trust and its integration into Eastern Bankshares creates a stronger organization with enhanced service offerings, which is expected to drive future revenue and earnings growth, particularly in the Greater Boston, Eastern Massachusetts, and New Hampshire markets.

Read the complete narrative.

Curious how a regional bank model gets to that higher value? The narrative focuses on revenue growth, rising margins and a future earnings multiple below today’s sector level. It examines how those elements connect in the forecast path to 2028 earnings power and fair value.

Result: Fair Value of $22.42 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, rising reserves tied to commercial real estate and recent GAAP net loss volatility could quickly challenge this upside story if asset quality weakens further.

Find out about the key risks to this Eastern Bankshares narrative.

Another Angle on Valuation

The narrative leans on a fair value of US$22.42 and a wide discount to an internal estimate of US$46.78. However, the current P/E of 88.3x is far above the US Banks industry at 11.9x, the peer average at 26.3x, and even the fair ratio of 38.5x. This raises the question of whether the real gap reflects value or valuation risk.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Eastern Bankshares Narrative

If you see the story differently or prefer to work from your own assumptions and data, you can build a tailored view in minutes with Do it your way.

A great starting point for your Eastern Bankshares research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If EBC has your attention, do not stop there, the same tools can help you quickly spot other opportunities that fit your style before the crowd catches on.

This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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