Thursday, an analyst at DA Davidson increased the price target for BOK Financial (NASDAQ:BOKF) to $97.00, up from the previous $90.00, while continuing to hold a Neutral stance on the stock. The adjustment comes as a response to the company's solid performance in the recent quarter and a slightly more optimistic earnings forecast than initially predicted.
The firm's 2024 net interest income (NII) outlook has been revised upwards from nearly $1.2 billion to just over that mark. Despite a decline in NII during the first quarter of 2024, the rate of decrease has slowed down. BOK Financial also indicated that both NII and margin reached their lowest point in the first quarter of this year. The credit quality showed positive signs, with low net charge-offs (NCOs) and a reduction in nonperforming assets.
The upgraded price target reflects a target price-to-earnings (P/E) ratio of 11.8 times DA Davidson's 2025 earnings per share (EPS) forecast of $8.58, which has been adjusted from the previous estimate of $8.14. This new target is discounted by 5%. The analyst's decision to maintain a Neutral rating is solely based on the company's current valuation.
BOK Financial's recent performance and revised earnings outlook suggest a stable financial trajectory as the company moves into the remainder of 2024. The increase in the price target to $97 from $90 is indicative of the analyst's acknowledgment of the company's solid quarter and the expectations of continued financial health.
InvestingPro Insights
In light of the recent price target increase for BOK Financial (NASDAQ:BOKF) by DA Davidson, it is noteworthy to consider additional insights from InvestingPro. The company has demonstrated a commitment to shareholder returns, having raised its dividend for an impressive 20 consecutive years. This consistent dividend history may appeal to income-focused investors, especially in the current economic climate.
InvestingPro data reveals that BOKF is trading near its 52-week high with a price of $91.11, just shy of the 99.58% mark. The market capitalization stands at $6.01 billion, and the stock has experienced a significant return over the last week, with a 1-week price total return of 8.92%. This momentum is further highlighted by a 6-month price total return of 47.69%. Despite a slight revenue decline in the last twelve months as of Q1 2024, the company's operating income margin remains robust at 38.41%, suggesting efficient management of its operations.
For investors looking for further analysis and additional InvestingPro Tips, there are more insights available on BOK Financial, including the company's earnings revisions and profitability predictions for the year. To enhance your investment research, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. There are 6 more InvestingPro Tips available that could give investors a more comprehensive understanding of BOKF's financial health and future prospects.
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