Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
Tuesday, Jefferies initiated coverage on BOK Financial (NASDAQ:BOKF) with a Hold rating and established a price target of $105.00. The research firm’s analyst cited the company’s relatively high level of fee income compared to its peers as a positive factor. Currently trading at $96.88 with a P/E ratio of 11.13x, the stock appears undervalued according to InvestingPro Fair Value estimates. This diversified business model, according to the analyst, should command a premium valuation.
The analyst praised BOK Financial’s fee income, which stands out against competitors. This revenue diversification is seen as a strength for the financial institution, complemented by a strong dividend history of 21 consecutive years of payments and 11 years of consecutive increases. Despite this, Jefferies pointed out that current economic uncertainty has made the growth prospects for BOK Financial’s fee-generating businesses less clear.
The lack of a clear growth catalyst in the near term was also noted by Jefferies. The analyst believes that the present economic conditions and the uncertainty they bring have been factored into BOK Financial’s current market valuation. InvestingPro data shows the company maintains a "GOOD" overall Financial Health score, with particularly strong metrics in cash flow and growth. As such, the Hold rating suggests that the analyst sees the stock as fairly valued at the time of the report. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis with an InvestingPro subscription.
The price target of $105.00 implies that Jefferies sees limited upside potential for BOK Financial’s stock from its current market price. The target is set with consideration of the company’s business model and the current economic landscape, which could impact BOK Financial’s performance.
The Hold rating indicates that Jefferies does not anticipate significant stock movement for BOK Financial in either direction in the near future. Investors are provided with the perspective that the current stock price is in line with the company’s financial outlook and market position.
In other recent news, BOK Financial reported its first-quarter 2025 earnings, revealing earnings per share of $1.86 and revenue of $500.37 million, both of which fell short of analyst expectations. The company’s performance was impacted by a significant decline in fee income, although net interest income saw an increase. BOK Financial is set to launch a new mortgage finance business later this year, which is expected to contribute positively to its revenue streams. Analysts have reacted to the earnings report with various adjustments to their price targets. DA Davidson reduced its price target to $114 while maintaining a Buy rating, citing challenges in brokerage and trading activities. Keefe, Bruyette & Woods lowered their target to $101, maintaining a Market Perform rating, and Raymond (NSE:RYMD) James revised their target to $105, maintaining an Outperform rating. Stephens also adjusted its price target to $110, maintaining an Equal Weight rating, highlighting steady credit quality and effective cost management. Despite these adjustments, BOK Financial plans to increase share repurchase activities, reflecting management’s confidence in the company’s long-term value.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.