How are energy investors positioned?
Investing.com - Piper Sandler has initiated coverage on Bank of Hawaii (NYSE:BOH) with a Neutral rating and a price target of $71.00. The bank, currently trading at a P/E ratio of 17.09x and offering a 4.27% dividend yield, has a market capitalization of $2.62 billion.
The research firm cited the bank’s "relative valuation" and "more challenging growth outlook" as key factors behind the Neutral stance, despite noting "stronger NIM visibility" as the bank works to restore more competitive profitability.
Piper Sandler expects positive operating leverage to benefit Bank of Hawaii, highlighting the bank’s disciplined control of non-interest expenses.
The firm believes credit quality "should remain a non-issue" based on recent migration trends and the bank’s larger concentration in Hawaii versus the U.S. mainland, along with its "more conservative underwriting approach" evidenced by lower risk-weighted assets to total assets ratio of 60%.
While Piper Sandler anticipates Bank of Hawaii will rebuild capital in the near term, the firm suggests share buybacks could eventually emerge, though it considers merger and acquisition activity "unlikely."
In other recent news, Bank of Hawaii reported its financial results for the second quarter of 2025, showing a slight beat on earnings per share (EPS) but a miss on revenue expectations. The company posted an EPS of $1.06, surpassing the forecast of $1.05, while actual revenue came in at $174.48 million, below the expected $177.92 million. In response to the earnings report, Stephens lowered its price target on Bank of Hawaii to $76.00 from $78.00, maintaining an Overweight rating. The price target adjustment follows the bank’s second-quarter operating EPS of $1.10, which exceeded both Stephens’ estimate of $1.04 and the Street’s consensus of $1.06. Pre-provision net revenue was reported at $67.0 million, 2.5% below Stephens’ projection. Meanwhile, DA Davidson reiterated its Neutral rating and maintained a $70.00 price target. DA Davidson noted that while loan growth was below expectations, positive net interest margin momentum and increased securities build-up improved their net interest income forecast. These developments reflect the ongoing analysis and projections by financial firms regarding Bank of Hawaii’s performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.