Stephens lowers Bank of Hawaii stock price target on slower growth

Published 29/07/2025, 13:06
Stephens lowers Bank of Hawaii stock price target on slower growth

Investing.com - Stephens lowered its price target on Bank of Hawaii (NYSE:BOH) to $76.00 from $78.00 on Tuesday, while maintaining an Overweight rating on the stock. According to InvestingPro analysis, the bank, currently trading at $62.87 with a market cap of $2.5 billion, appears undervalued based on its Fair Value assessment.

The price target reduction follows Bank of Hawaii’s second-quarter operating earnings per share of $1.10, which exceeded both Stephens’ estimate of $1.04 and the Street’s consensus of $1.06. The bank reported pre-provision net revenue of $67.0 million, 2.5% below Stephens’ projection. Notably, InvestingPro data shows the bank maintains a strong dividend yield of 4.45% and has consistently paid dividends for 54 consecutive years.

Stephens noted that while deposit cost reduction slowed during the quarter, asset repricing dynamics remain intact and should continue to drive the net interest margin higher in coming periods. The firm expressed optimism that loan growth could return to the low-single-digit range in the second half of 2025, despite slower growth in the second quarter. InvestingPro subscribers have access to 6 additional key insights about Bank of Hawaii’s financial health and growth prospects.

Bank of Hawaii reiterated its guidance for 2-3% year-over-year expense growth, which implies a moderation in operating expenses during the second half of the year. The bank currently has a $126 million buyback authorization in place.

Stephens adjusted its 2026 operating earnings per share estimate for Bank of Hawaii to $5.23 from $5.30, contributing to the price target reduction, while noting that buybacks do not appear to be a near-term capital allocation priority for the bank.

In other recent news, Bank of Hawaii Corporation reported its financial results for the second quarter of 2025. The company achieved earnings per share (EPS) of $1.06, slightly exceeding the forecast of $1.05. However, revenue fell short of expectations, totaling $174.48 million compared to the anticipated $177.92 million. Despite the minor EPS beat, the revenue miss was notable for investors. The company’s stock experienced a decline following these results. There were no updates on mergers or acquisitions in this period. Analyst firms have not recently upgraded or downgraded the stock. These developments provide a snapshot of the company’s current financial standing.

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