UPDATE: UBS Downgrades First Hawaiian (FHB) to Sell
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UBS analyst Brock Vandervliet downgraded First Hawaiian (NASDAQ: FHB) from Neutral to Sell with a price target of $13.00 (from $15.00).
The analyst comments "FHB is a likely underperformer disadvantaged by implications of COVID-19 on the tourist-heavy Hawaiian economy (19% of GDP). We forecast reserves to rise to 1.60% by Q4’20 from 1.24% in Q1 with reserve building weighing on earnings. FHB also has among the highest asset sensitivity in the sector, making it poorly positioned for a period of prolonged low rates. This comes on top of slower loan growth. We forecast loan growth falling from 3.9% in 2019 to 80 bps to 2.5% for 2020 and 2021. The stock looks vulnerable, with a premium valuation on both 2021E PE (2.5 turns above sector) and a PTBV multiple of (1.3x vs. 1.1x)."
Shares of First Hawaiian closed at $16.25 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades, Hot Comments, Hot Downgrades
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