Eastern Bankshares (EBC): Valuation Analysis After Recent Stock Price Gains

Eastern Bankshares (EBC) has seen a 8% stock price increase over the past month, with a year-to-date return of 12%. The company's recent merger with Cambridge Trust and integration into Eastern Bankshares is expected to drive future revenue and earnings growth. However, increased reserves for commercial real estate loans and short-term earnings volatility from merger activity could challenge the bullish outlook. The market has valued the company at $18.99, but the most widely tracked narrative pegs fair value at $21.75, suggesting that the company is undervalued.