UPDATE: UBS Downgrades First Hawaiian (FHB) to Sell

June 29, 2020 4:49 AM EDT
Get Alerts FHB Hot Sheet
Price: $27.53 -1.99%

Rating Summary:
    5 Buy, 7 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 8
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(Updated - June 29, 2020 6:02 AM EDT)

(updating comment)

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)."

For an analyst ratings summary and ratings history on First Hawaiian click here. For more ratings news on First Hawaiian click here.

Shares of First Hawaiian closed at $16.25 yesterday.


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