BOK Financial: A Stable Hold Amid Solid Performance and Prudent Growth Expectations

David Chiaverini, an analyst from Wedbush, maintained the Hold rating on Bok Financial (BOKF – Research Report). The associated price target is $100.00.

David Chiaverini has given his Hold rating due to a combination of factors that indicate BOK Financial is maintaining a stable performance, though not exceptional enough to warrant a higher rating. The bank reported a solid quarter, with net interest income (NII) exceeding expectations and a robust credit quality that stands out when compared to its peers. BOK Financial’s loan growth was slightly below expectations, primarily due to lower commercial real estate (CRE) balances as the bank adhered to internal concentration limits. Despite this, the net interest margin met projections, and the bank is expected to benefit from the full value of its VISA B shares in the upcoming quarter. Additionally, the bank’s proactive repositioning of its securities portfolio, although resulting in a loss for the current quarter, is anticipated to improve future NII and NIM.

The bank’s guidance for the fiscal year 2024 has been positively updated, with refined loan growth projections and expectations for net interest income to be slightly above previous estimates. While the provision expense is forecasted to be similar to 2023 levels, it implies a lower-than-anticipated provision for the next fiscal year. Despite these positive aspects and adjustments made to the core earnings per share (EPS) estimate for 2024, Chiaverini maintains a neutral stance, suggesting that the current valuation of BOK Financial’s stock adequately reflects the bank’s outlook. The bank’s performance, including better-than-expected NII contributing to a core EPS that surpassed estimates, supports a consistent but cautious approach, justifying the Hold rating.

In another report released on April 10, Wells Fargo also assigned a Hold rating to the stock with a $95.00 price target.

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Bok Financial (BOKF) Company Description:

BOK Financial Corp. is a holding company, which engages in the provision of financial solutions. It operates through the following segments: Commercial Banking; Consumer Banking; Wealth Management; and Funds Management. The Commercial Banking segment includes lending, treasury, and cash management services, as well as customers risk management products for small businesses, middle market, and larger commercial customers. The Consumer Banking segment offers retail lending and deposit services; lending and deposit services to small business customers served through the retail branch network; and all mortgage banking activities. The Wealth Management segment provides fiduciary services, private bank services, and investment advisory services in all markets, as well as underwriting state and municipal securities. The Funds Management unit manages overall liquidity needs and interest rate risks. The company was founded in 1990 and is headquartered in Tulsa, OK.