[ad_1]
wwing/iStock Unreleased by way of Getty Photos
Financial institution of Hawaii (NYSE:BOH) shares dipped 2.5% in Monday late morning buying and selling after Piper Sandler downgraded the regional lender to Underweight from Impartial following the inventory’s latest outperformance relative to friends.
From a month in the past, (BOH) has gained 6%, whereas the SPDR S&P Regional Banking ETF (KRE) inched up 0.2%. Searching for Alpha’s Quant system offers BOH a Valuation Grade of “C,” with the poorest marks in price-to-earnings and price-to-sales ratios.
Analyst Andrew Liesch identified that (BOH) is buying and selling at 19.5times his 2025 EPS estimate and about 210% of tangible guide worth, “representing a major premium valuation in comparison with regional financial institution friends (10.8x consensus 2025E and ~140% of TBV),” he wrote in a be aware to purchasers.
Nonetheless, he thinks such a premium is being supported by the financial institution’s “conservative working profile, wonderful deposit base and monitor report of excellent credit score high quality by way of financial cycles.”
On the identical time, although, the analyst sees challenged earnings progress within the quarters forward, as (BOH) has the very best deposit prices among the many largest Hawaii-based lenders at 1.81%. “However that gives it extra alternative to cut back charges than friends, which might serve it properly in a Fed charge reducing regime,” he added.
Piper’s Underweight ranking aligns with the SA Quant system ranking of Promote and diverges from the common Wall Road analyst ranking of Maintain.
[ad_2]
Source link
