BOK Financial stock target cut to $105 by Raymond James

Tuesday, BOK Financial Corporation (NASDAQ:BOKF) experienced a revision in its stock price target from Raymond (NSE:RYMD) James, with the firm reducing the target to $105.00 from the previous $125.00. Despite this adjustment, Raymond James maintained an Outperform rating on the shares of the regional bank. The stock, currently trading near its 52-week low of $85.08, has seen a 16% decline over the past six months. InvestingPro analysis reveals several key strengths, including a 21-year track record of consistent dividend payments, with the current yield at 2.54%.

The price target reduction followed the release of BOK Financial’s first-quarter 2025 results, which did not meet the expectations set by Raymond James analysts. The company reported lower earnings per share (EPS) and pre-provision net revenue (PPNR) than anticipated, primarily due to a significant decrease in trading fees. This decline was attributed to both reduced trading volumes and narrower spreads, which were influenced by current policy uncertainty. According to InvestingPro data, the company maintains a P/E ratio of 10.85x and is expected to achieve 7% revenue growth in FY2025, despite current headwinds.

The bank’s performance on Tuesday did not align with the market’s expectations, leading to an underperformance in its shares. Consequently, Raymond James has revised its EPS estimates downward. The new revenue forecast is now closer to the lower end of BOK Financial’s guidance for mid to upper single-digit growth. Additionally, the firm’s noninterest expense projections are at the midpoint of the expected mid single-digit growth range. A more conservative approach has also been adopted regarding loan growth, now anticipated at 3.5% year-over-year, compared to the previous estimate of around 6.5%.

Despite these adjustments, Raymond James analysts still perceive BOK Financial as a relatively safe investment option, citing the bank’s solid operating performance, strong profitability, robust capital levels, and consistent asset quality. The analysts noted that the ongoing impacts of tariffs and policy changes from the Trump administration necessitate a more cautious stance in their modeling and forecasts. For deeper insights into BOKF’s financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which are available for over 1,400 US stocks.

In their commentary, Raymond James acknowledged the uncertainties in BOK Financial’s forward outlook, as discussed in the bank’s recent earnings call. However, they emphasized that the bank’s shares continue to be seen as a relative safe haven, trading at a valuation that is considered discounted when compared to its peers.

In other recent news, BOK Financial Corporation reported its first-quarter 2025 earnings, which did not meet analysts’ expectations. The company announced earnings per share of $1.86, falling short of the projected $1.98. Additionally, BOK Financial’s revenue came in at $500.37 million, missing the anticipated $520.04 million. Despite an increase in net interest income, the company faced a significant decline in total fee income, down by $22.8 million. Analysts from firms such as Barclays (LON:BARC) and RBC Capital Markets noted these challenges during the earnings call. BOK Financial plans to launch a new mortgage finance and warehouse lending business later this year, which could positively impact future earnings. The company maintains strong capital levels and a low loan-to-deposit ratio, indicating conservative financial management. Looking forward, BOK Financial expects loan growth and anticipates two 25 basis point rate cuts, projecting future earnings per share growth.

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