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Shares of East West Bancorp (EWBC - Get Report)  fell Tuesday after media reports said Raymond James downshifted its rating on the shares to underperform from market perform.

The Pasadena, Calif., bank's stock price dropped 4.21% Tuesday to $40.05 a share.

East West, which is set to report quarterly earnings on Oct. 17, remains "poised for revenue growth" based on rising loan volume, Zacks Investment Research noted.

But East West also faces headwinds, including "increasing costs, margin pressure and deteriorating asset quality," according to Zacks.