Keefe, Bruyette & Woods Downgrades Bank of Hawaii (BOH) to Market Perform, 'Risk/Reward More Balanced in the Current Backdrop'

Keefe, Bruyette & Woods analyst Kelly Motta downgraded Bank of Hawaii (NYSE: BOH) from Outperform to Market Perform with a price target of $78.00.

The analyst comments "When we upgraded BOH earlier this year, several things were working in their favor: NII was primed for leading expansion, the growth outlook was more optimistic, and incremental capital return was back on the table. However, the B/S has been coming in smaller than expected, which along with rate hikes has pulled in our intermediate-term NII outlook. Buybacks help mitigate the impact of negative NII revisions on EPS estimates, though we think capital (6.1% TCE/8.8% T1L) may be a constraint for relative aggressiveness. As such, we believe regaining the historical premium will be more challenging nearer term, thus we are moving to MP (from OP) with risk/reward more balanced."

For an analyst ratings summary and ratings history on Bank of Hawaii click here. For more ratings news on Bank of Hawaii click here.

Shares of Bank of Hawaii closed at $70.53 yesterday.

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