Timur Braziler, an analyst from Wells Fargo, reiterated the Sell rating on First Hawaiian. The associated price target is $24.00.
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Timur Braziler has given his Sell rating due to a combination of factors impacting First Hawaiian’s financial outlook. The bank’s growth prospects appear limited, with its balance sheet expansion lagging behind its peers, and this trend is expected to continue at least until 2026. Additionally, the valuation of First Hawaiian is considered high, while credit conditions leave little room for error, making it a less attractive investment compared to other options.
Despite a slight increase in earnings per share, driven by better-than-expected fees and net interest income, the overall earnings pressure is anticipated to persist through 2027. This is due to factors such as muted balance sheet growth, potential rate cuts, and limited opportunities for deposit repricing. Furthermore, while there was a temporary boost in commercial and industrial loans, this was offset by significant payoffs in construction loans, leading to a reduced loan growth forecast. These challenges, along with expected normalization of fees and rising expenses, contribute to a cautious outlook on First Hawaiian’s stock.
In another report released today, Barclays also maintained a Sell rating on the stock with a $25.00 price target.