Truist Securities Upgrades BOK Financial (BOKF) to Buy

Truist Securities analyst Brandon King upgraded BOK Financial (NASDAQ: BOKF) from Hold to Buy with a price target of $123.00 (from $112.00).

The analyst comments "We upgrade our rating to Buy from Hold and raise our PT to $123 from $112. BOKF has a neutrally positioned balance sheet to interest rate moves, which should support continued NII growth in various interest rate scenarios as mid-to-high single digit loan growth remains at a pace above peers with upside potential from an increase in CRE originations next year. The NIM has been weighed down by elevated deposit betas (53% cumulative vs. coverage median of 43%) over the last several quarters due to its concentration of commercial and wealth accounts (~67% of total deposits), but we expect a relatively high beta in a declining rate scenario. Consequently, the NIM should trend fairly stable and potentially higher, driven by higher beta deposits and variable rate borrowings that should offset the repricing of ~69% of loans that are floating rate. Lastly, trading revenues should become a positive tailwind over the next several quarters from improved MBS trading activity and potentially more hedging activity from the move in interest rates. We now forecast EPS growing by 9% in 2025, driven by 6% growth in NII. The stock trades at 12.6x our '25 EPS estimate, or a 12% premium to peers vs. the 5-year median of 9%. Overall, we find the stock very compelling considering EPS upside, strong balance sheet, and credit quality track record. Risks to our view are an energy downturn, healthcare-senior living credit stress, and lower than expected pick up in mortgage volumes/activity."

For an analyst ratings summary and ratings history on BOK Financial click here. For more ratings news on BOK Financial click here.

Shares of BOK Financial closed at $107.51 yesterday.

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