will strong financial very soon

Outperform - Price 13.86 on Sept. 9
by FBR Capital Markets

Upgrading to Outperform and raising target to 18 from 12. We believe the decision to place [Fannie Mae and Freddie Mac] into a conservatorship has positive implications for bank stocks...peak defaults and losses in EWBC's residential-construction loan portfolio may be nearer than anticipated. We believe EWBC has been one of the most proactive banks in addressing...problem loans...Maintaining our FY08 and FY09 operating EPS estimates of 0 cents and 95 cents. Market cap: $880 million.

The piece is a virtual hit list of banks that need to refinance: Bank of America (BAC), Citigroup (C), Citizens Republic Bancorp (CRBC), Colonial Bancgroup (CNB), Comerica (CMA), East West Bancorp (EWBC), First Horizon (FHN), Huntingon Bancshares (HBAN), KeyCorp (KEY), Marshall & Ilsley (MI) (conviction sell!!) National City (NCC), Popular Inc. (BPOP) and South Financial (TSFG).

East West shares, off more than 70% in the past year, are cheap in light of the bank's earnings potential in 2009. Upside exceeds 40%.

20.2

When the banking scare calms down, this bank has a lot of Asian customers and with the growth in Asia I feel this bank will benefit.

east west bancorp

Downgraded by Cohen Bros from Buy to Hold

nonperformer