Wells Fargo analyst Timur Braziler maintained a Sell rating on First Hawaiian (FHB – Research Report) yesterday and set a price target of $22.00.
Timur Braziler has given his Sell rating due to a combination of factors impacting First Hawaiian’s financial outlook. The potential for increased tariffs and a slowdown in visitor arrivals pose significant risks to Hawaii’s economy, which could lead to higher losses for the bank. These economic challenges are likely to affect First Hawaiian’s credit quality and growth prospects, as the state is particularly vulnerable to federal spending cuts and changes in U.S. policy.
Additionally, while there was a slight improvement in net interest income and net interest margin, the overall growth in earning assets remains uncertain. The bank’s balance sheet showed minimal growth, with a decline in loan and deposit balances, which further complicates its financial position. Despite some positive aspects, such as controlled charge-offs and stable non-performing loans, the economic uncertainties and potential policy impacts have led to a cautious outlook, justifying the Sell rating.
FHB’s price has also changed slightly for the past six months – from $23.850 to $23.480, which is a -1.55% drop .