DA Davidson Downgrades Bank of Hawaii (BOH) to Neutral; Valuation Call
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Price: $79.43 +0.94%
Rating Summary:
2 Buy, 10 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 23 | New: 12
Rating Summary:
2 Buy, 10 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 23 | New: 12
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DA Davidson downgraded Bank of Hawaii (NYSE: BOH) from Buy to Neutral, price target cut $2 to $43.
DA analyst says, "With our earnings revision, we are trimming our price target to $43 from $45, which equals roughly 1.70x our updated 2012 TBV estimate. This valuation reflects an outperforming franchise generating an above average ROE with minimal credit risk, but one that also faces near term revenue headwinds. Since our target no longer represents significant upside from current trading levels (BOH shares have appreciated nearly 20% this month), we are downgrading the shares."
"We have adjusted our earnings model to include lower NIM assumptions, reduced loan growth and weaker fee income offset partially by lower provision expense. As a result, we are raising our 2011 EPS estimate from $3.30 to $3.39 (essentially equal to the positive variance from this quarter), but are lowering our 2012 EPS estimate from $3.60 to $3.47."
For more ratings news on Bank of Hawaii click here and for the rating history of Bank of Hawaii click here.
Shares of Bank of Hawaii closed at $41.88 yesterday.
DA analyst says, "With our earnings revision, we are trimming our price target to $43 from $45, which equals roughly 1.70x our updated 2012 TBV estimate. This valuation reflects an outperforming franchise generating an above average ROE with minimal credit risk, but one that also faces near term revenue headwinds. Since our target no longer represents significant upside from current trading levels (BOH shares have appreciated nearly 20% this month), we are downgrading the shares."
"We have adjusted our earnings model to include lower NIM assumptions, reduced loan growth and weaker fee income offset partially by lower provision expense. As a result, we are raising our 2011 EPS estimate from $3.30 to $3.39 (essentially equal to the positive variance from this quarter), but are lowering our 2012 EPS estimate from $3.60 to $3.47."
For more ratings news on Bank of Hawaii click here and for the rating history of Bank of Hawaii click here.
Shares of Bank of Hawaii closed at $41.88 yesterday.
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