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On Wednesday, DA Davidson adjusted its outlook on BOK Financial (NASDAQ:BOKF), increasing the price target to $111 from the previous $97, while keeping a Neutral rating on the stock. The firm cited a robust performance in the recent quarter, highlighting lower costs, and strong growth in loans and deposits. Additionally, BOK Financial has shown excellent credit quality trends.
The company's performance this quarter was characterized by several positive trends, but the firm noted that these might not continue at the same rate. BOK Financial anticipates that fee income will likely hit the lower end of the projected $825 to $850 million range.
Moreover, the Net Interest Income (NII) is expected to be around $1.2 billion, a slight adjustment from April's forecast of just over $1.2 billion. This revision is based on the assumption of a single rate cut in November, contrary to the earlier forecast of two rate cuts.
Furthermore, Commercial Real Estate (CRE) payoffs in the second quarter were slightly higher than anticipated. The maintained Neutral stance is attributed to the stock's valuation. The new price target represents a target P/E of 13.0 times the firm's 2025 earnings per share forecast of $8.59.
InvestingPro Insights
As BOK Financial (NASDAQ:BOKF) continues to navigate the financial landscape, DA Davidson's revised outlook is bolstered by key metrics that reflect the company's current market standing. A snapshot of real-time data from InvestingPro shows a Market Cap of $6.84 billion and a Price to Earnings (P/E) Ratio that stands at 14.96, with an adjusted P/E Ratio for the last twelve months as of Q2 2024 at 13.84. Additionally, the company has experienced a 1 Month Price Total Return of 17.73%, indicating a strong return over the recent period, aligning with the positive sentiment expressed in the recent price target adjustment.
InvestingPro Tips highlight that BOK Financial has a history of reliability with dividend payments, having maintained them for 20 consecutive years, and has raised its dividend for 10 consecutive years. These consistent dividend payments are a testament to the company's commitment to shareholder value, even as it faces challenges such as weak gross profit margins and a cash burn that analysts are watching closely. Moreover, the company is trading near its 52-week high, with the price at the previous close standing at $106, just shy of the 52-week high's 98.17% mark. This suggests that the market is responding favorably to the company's strategies and performance.
While the company's financial health is a complex picture with various factors to consider, these InvestingPro Tips can offer investors additional insights. For those looking for deeper analysis and more tips like these, InvestingPro provides a comprehensive suite of tools and data. To enhance your investment strategy with this valuable resource, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 11 additional InvestingPro Tips available for BOK Financial, which could provide further guidance for investors considering this stock.
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