On Wednesday, Stephens analyst Matt Olney adjusted the price target for BOK Financial (NASDAQ:BOKF), reducing it to $127 from $135, while retaining an Equal Weight rating on the stock. The revised target reflects a change in valuation based on the company's recent performance and future prospects. With a current market capitalization of $7.33 billion and a P/E ratio of 14x, InvestingPro analysis indicates the stock is currently trading slightly below its Fair Value.
BOK Financial's fourth-quarter 2024 results showcased robust net interest income (NII), strong fee revenue, and a decrease in loan loss provision expenses, leading to earnings per share (EPS) and pre-provision net revenue (PPNR) that surpassed consensus forecasts.
Olney noted that the company's 2025 guidance anticipates a more robust revenue growth, which is expected to yield positive operating leverage. InvestingPro data reveals the company has maintained dividend payments for 20 consecutive years and achieved a solid YTD return of 7.34%, demonstrating consistent shareholder value creation.
The analyst pointed out that BOK Financial is poised to benefit from a revenue mix-shift, with a stronger NII and a slower fee income growth, attributed to the steepening yield curve observed in recent months. This shift is believed to position BOK Financial favorably in comparison to its regional peers.
Furthermore, expectations are set for BOK Financial's loan growth to exceed that of its peers in 2025. This optimism is based on the company's loan portfolio mix, its business-friendly operating environment, and recent growth in new producers.
The new price target of $127 is derived from applying a 14x multiple to the firm's 2026 EPS forecast and 1.6x to the 12-month trailing book value per share (TBVPS). Despite the lowered price target, the Equal Weight rating suggests that Stephens views BOK Financial's stock as adequately valued at the current levels.
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