Stock market today: Stocks fall as investors rotate out of tech into Jackson Hole
On Wednesday, Stephens analyst Matt Olney revised the price target for BOK Financial (NASDAQ: BOKF) shares, reducing it to $110 from the previous $124, while maintaining an Equal Weight rating on the stock. The stock, currently trading at $88.13, sits near its 52-week low of $85.08, despite maintaining a 21-year streak of consistent dividend payments with a current yield of 2.59%. The adjustment follows the company’s first-quarter earnings for 2025, which showed steady credit quality and effective cost management. Despite a decline in fees and commissions and a slowdown in loan growth, BOK Financial has kept its full-year revenue outlook unchanged, anticipating a significant pickup in the latter part of the year. According to InvestingPro data, the company maintains a Fair financial health rating, with particularly strong scores in profitability and cash flow management.
The company’s confidence stems from an uptick in revenue trends observed in April, driven by an increase in loan growth and trading revenue. Additionally, BOK Financial is incorporating mortgage finance into its fiscal year 2025 projections, with the new service expected to launch towards the end of the year.
Olney’s rationale for the Equal Weight rating and the revised price target of $110 is based on a valuation of 12.5 times the estimated earnings per share (EPS) for 2026 and 1.4 times the twelve-month trailing book value per share (TBVPS). The analyst’s commentary highlighted the key factors influencing the company’s performance and outlook, including the expected contribution of the mortgage finance business to the company’s revenue streams in the future. InvestingPro analysis suggests the stock is currently fairly valued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of BOKF among 1,400+ top US stocks.
In other recent news, BOK Financial Corporation reported its first-quarter 2025 earnings, which fell short of analyst expectations. The company announced earnings per share (EPS) of $1.86, missing the projected $1.98, and revenue of $500.37 million, which was below the anticipated $520.04 million. This underperformance was attributed to a significant decrease in trading fees due to reduced trading volumes and narrower spreads. Raymond (NSE:RYMD) James responded by lowering BOK Financial’s stock price target from $125 to $105, while maintaining an Outperform rating on the bank’s shares. Despite the earnings miss, BOK Financial maintained strong capital levels and a low loan-to-deposit ratio, highlighting its conservative financial management. The company is also planning to launch a mortgage finance and warehouse lending business later in the year, which is expected to contribute positively to its financials. Raymond James analysts noted a more cautious outlook for BOK Financial, revising their EPS estimates downward and adopting a conservative approach to loan growth. However, the bank’s shares are still considered a relatively safe investment, trading at a discounted valuation compared to peers.
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