On Thursday, RBC Capital adjusted its outlook on shares of BOK Financial Corporation (NASDAQ:BOKF), raising the price target to $98 from $94 while maintaining a Sector Perform rating. The investment firm reviewed the first-quarter results of the company, noting solid core trends. The report highlighted that although net interest income and margins faced modest pressure, there was notable strength in loan and deposit growth. Additionally, the company saw an increase in core fees and maintained tight control over core expenses.
The financial health of BOK Financial was described as robust, with stable net charge-offs (NCOs) and a reduction in non-performing assets (NPAs). The firm's analysis suggests that the outlook for 2024 is promising, with expectations for the margin to remain stable or potentially expand moving forward.
In response to these findings, RBC Capital has updated its estimates for BOK Financial. The revised price target of $98 reflects a positive adjustment based on the company's first-quarter performance and the anticipated trends for the upcoming year. The Sector Perform rating indicates that RBC Capital views BOK Financial's stock as performing in line with the expectations for the sector.
The report from RBC Capital concluded with a direct quote from the analyst, stating, "We recap 1Q results. Core trends were solid. Net interest income and the margin remain modestly pressured, loan and deposit growth strengthened, while core fees were higher, and core expense discipline was tight.
Credit was healthy with stable NCOs and lower NPAs. The 2024 outlook continued to support consistent trends, with the margin likely to be stable to expanding from here. We adjust our estimates and raise our price target to $98 from $94." This commentary encapsulates the firm's rationale behind the updated price target and ongoing rating for BOK Financial.
InvestingPro Insights
In light of the recent analysis by RBC Capital on BOK Financial Corporation (NASDAQ:BOKF), current data from InvestingPro provides additional insights into the company's performance and valuation. BOK Financial has demonstrated a significant return over the last week with a price total return of 8.92%. This uptick is part of a larger trend, with a six-month price total return of 47.69%, indicating substantial investor confidence and market momentum.
InvestingPro Tips highlight that BOK Financial has not only raised its dividend for 10 consecutive years, but it has also maintained dividend payments for 20 consecutive years. This consistent return to shareholders underlines the company's financial stability and commitment to rewarding investors. Additionally, analysts predict the company will be profitable this year, which is supported by the company being profitable over the last twelve months as of Q1 2024.
From a valuation standpoint, BOK Financial is currently trading at a P/E ratio of 11.62, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 13.43. While the PEG ratio for the same period stands at 2.53, suggesting that the stock may be trading at a premium when factoring in near-term earnings growth. The company's market capitalization is 6010M USD, reflecting its size and significance in the sector.
For readers looking to delve deeper into BOK Financial's metrics and gain further InvestingPro Tips, additional insights are available at https://www.investing.com/pro/BOKF. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 6 additional InvestingPro Tips listed, providing a more comprehensive understanding of BOK Financial's market position and future potential.
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