Bank of Hawaii's Earnings Growth Could Be Challenging, Says Bearish Analyst
Portfolio Pulse from Priya Nigam
Bank of Hawaii Corp (NYSE:BOH) shares fell after reporting Q2 earnings. Piper Sandler downgraded BOH from Neutral to Underweight, lowering the price target from $70 to $61. Analyst Andrew Liesch cited challenges in earnings growth due to higher preferred dividends and premium valuation. Over the past three months, BOH shares gained 11%, outperforming the SPDR S&P Regional Banking ETF (NYSE:KRE), which rose by 5%.
August 12, 2024 | 6:41 pm
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NEUTRAL IMPACT
The SPDR S&P Regional Banking ETF (NYSE:KRE) rose by 5% over the past three months, underperforming Bank of Hawaii's 11% gain. The ETF's performance is indirectly mentioned in the context of BOH's relative performance.
While KRE's performance is mentioned, the primary focus is on BOH. The ETF's short-term price is unlikely to be significantly impacted by this news.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30
NEGATIVE IMPACT
Bank of Hawaii Corp (NYSE:BOH) was downgraded by Piper Sandler from Neutral to Underweight, with a price target lowered from $70 to $61. The downgrade is due to expected challenges in earnings growth, higher preferred dividends, and premium valuation.
The downgrade and lowered price target by Piper Sandler, along with the analyst's concerns about earnings growth and higher preferred dividends, are likely to negatively impact BOH's stock price in the short term.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100