Here is Why Eastern Bankshares (EBC) is Favored by Hedge Funds

Eastern Bankshares (NASDAQ:EBC) is one of the best financial pure plays under $100 according to Hedge Funds.

Eastern Bankshares (NASDAQ:EBC) has returned almost 8% so far in 2025, and the consensus 1-year median price target is $21.33, implying more than 15% upside as of the December 30 close. The stock has been assigned three analyst ratings, of which two analysts gave Buy calls, and 1 was a Hold call.

Jared Shaw from Barclays initiated his coverage on Eastern Bankshares (NASDAQ:EBC) on December 19. The analyst issued a Hold rating with a $22 price target. Despite his neutral stance, Shaw has estimated an almost 19% upside for the stock.

Shaw discussed several fundamental factors that provide “optionality” for the company. These include their elevated capital levels, strong deposit base, and their commercial platform. However, the analyst also pointed out some evident headwinds that expose them to a higher level of risk compared to peers. First is the bank’s meager market growth. Second relates to the integration of two merger deals finalized in the last 2 years, i.e., HarborOne Bancorp in 2024 and Cambridge Bancorp in 2025. Given these structural issues, Shaw has maintained a neutral stance on the stock.

Eastern Bankshares (NASDAQ:EBC) is the holding company for Eastern Bank in Boston, which specializes in retail & commercial banking as well as wealth management, investment, and insurance services. They cater to both individual and institutional clients with a highly comprehensive suite of financial offerings.

While we acknowledge the potential of EBC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.