Jefferies Still Waiting For Revenue Stability On Bank Of Hawaii

According to Jefferies, Bank of Hawaii BOH low interest rate environment and the impact of Durbin should keep revenues running in place over the next year, but an aggressive capital management policy and potential for negative provisions limit EPS downside. Jefferies said that it sees upside from current levels and a 4% divi yield is compelling, but ample revenue headwinds limit stock upside in our view. “Our price target of $50/share is established by applying a 2.4x multiple to our estimate of year-end tangible book, which is below the historical average of 2.7x, but justified given our expectations for lower tangible returns.” Bank of Hawaii closed yesterday at $46.14.