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Investing.com - Piper Sandler initiated coverage on First Hawaiian (NASDAQ:FHB) with a Neutral rating and a $26.00 price target on Thursday. The bank, currently valued at $3.07 billion, trades at a P/E ratio of 12.65, aligning with InvestingPro’s Fair Value assessment.
The research firm cited First Hawaiian’s relative valuation and slower earnings per share growth outlook as key factors in its rating decision, noting that the bank has already executed two securities loss trades. InvestingPro analysis reveals the stock is trading at a high P/E ratio relative to its near-term earnings growth potential.
Piper Sandler highlighted potential opportunities for First Hawaiian to enhance its earnings power by increasing its loan-to-deposit ratio, which currently stands at 71%, though organic loan growth prospects remain in the low single digits.
The firm characterized First Hawaiian as more commercially oriented and more diversified than local peers, with only 68% of its loans in Hawaii, providing more favorable spreads and better growth prospects.
First Hawaiian’s strong capital position is expected to support organic growth, its current dividend, and share buybacks, with the bank viewing potential mergers and acquisitions on the U.S. mainland as possible but not necessary, according to Piper Sandler. The bank maintains a notable 4.23% dividend yield and has consistently paid dividends for 10 consecutive years. Discover more insights and exclusive analysis with InvestingPro’s comprehensive research report.
In other recent news, First Hawaiian Inc reported strong Q2 2025 earnings, exceeding Wall Street forecasts. The company achieved an earnings per share (EPS) of $0.58, surpassing the anticipated $0.4887 by 18.68%. Additionally, revenue reached $217.54 million, outpacing the projected $213.87 million. These results highlight a robust financial performance for the quarter. Following the earnings announcement, analysts have been closely monitoring the company’s developments. While specific analyst upgrades or downgrades were not mentioned, the earnings beat suggests positive sentiment among investors. This recent performance underscores First Hawaiian Inc’s ability to deliver results that exceed market expectations.
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