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On Wednesday, Keefe, Bruyette & Woods adjusted its outlook on BOK Financial (NASDAQ:BOKF), reducing the price target from $115.00 to $101.00, while reaffirming a Market Perform rating. The revision followed BOK Financial’s first-quarter earnings for 2025, which fell short of both KBW and consensus estimates. This shortfall was attributed primarily to lower fee income, though it was partially offset by a decrease in provisioning due to a contraction in loans.
The bank’s loans witnessed a 7% decline last quarter on an annualized basis, influenced by increased payoffs in the energy and healthcare sectors. Despite the lower-than-expected earnings, the firm’s 2025 guidance remained largely the same, except for a slight downward adjustment in the fee income outlook. The $5.66 billion market cap bank has maintained a strong dividend track record, with 11 consecutive years of dividend increases and a current yield of 2.59%.
BOK Financial’s share repurchase activity was minimal during the first quarter of 2025, but the company anticipates becoming more active in buying back shares in the second quarter. In light of recent developments, Keefe, Bruyette & Woods has also revised its earnings estimates for the company, setting them at $8.00 for 2025 and $8.75 for 2026.
The new price target reflects the bank’s current valuation, trading at approximately 11.0 times the 2025 estimated earnings and 1.2 times the tangible book value. InvestingPro analysis indicates the stock is currently fairly valued, with a P/E ratio of 13.37x and a concerning PEG ratio of 7.5x, suggesting premium pricing relative to growth. BOK Financial’s performance and future repurchase plans will continue to be monitored by investors as the company navigates through the evolving financial landscape, with the stock already down 16.79% year-to-date.
In other recent news, BOK Financial Corporation reported its first-quarter 2025 earnings, revealing earnings per share (EPS) of $1.86, which fell short of the forecasted $1.98. The company’s revenue of $500.37 million also missed the anticipated $520.04 million, reflecting a challenging start to the year. Despite these results, BOK Financial maintains its full-year revenue outlook, expecting a significant increase later in the year due to factors such as loan growth and trading revenue. Analysts from Raymond (NSE:RYMD) James revised their stock price target for BOK Financial to $105, maintaining an Outperform rating, while Stephens also lowered its price target to $110, keeping an Equal Weight rating. Both firms cited the company’s solid operating performance and strong capital levels as positive indicators. Additionally, BOK Financial plans to launch a mortgage finance business towards the end of the year, which is expected to contribute positively to its revenue streams. The company continues to face challenges in fee income, with a notable decline in trading fees attributed to reduced trading volumes and narrower spreads. Despite these hurdles, BOK Financial’s conservative financial management has allowed it to maintain strong capital levels and a low loan-to-deposit ratio.
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