Financial Wire

Research Alert: CFRA Maintains Sell Opinion On Shares Of Bank Of Hawaii Corporation

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

After digesting Q1 2026 earnings, we increase our 12-month target price by $6 to $57, 8.3x our 2027 EPS estimate, a discount to the peer average of 10.9x, as weak growth prospects outweigh the benefits of limited competition in Hawaii. We raise our 2026 EPS estimate to $5.95 from $5.33 and 2027's to $6.84 from $5.94. Our revenue projections are $801M in 2026 and $858M in 2027. BOH's Q1 results showed positive momentum, with net interest income growing for the eighth straight quarter and credit quality remaining solid. Despite these strengths, we believe the stock is overvalued given weak fundamental growth trends. Loan balances have been flat Y/Y, while deposits have grown only 1% over four years. Furthermore, although BOH maintains strong capital levels (12.1% CET1 ratio), the bank faces unusual vulnerability to rising long-term interest rates due to significant unrealized losses in its securities portfolio. We note BOH's quarterly dividend has been stagnant at $0.70 since mid-2021.

Related Articles

Asia

KMD Brands Secures NZ$11 Million in Retail Entitlement Offer Completion

KMD Brands (ASX:KMD, NZE:KMD) has completed the retail component of its fully underwritten 1-for-0.73 accelerated renounceable entitlement offer, with eligible shareholders subscribing for around 182.6 million new shares at NZ$0.06 each, raising about NZ$11 million as part of a total NZ$58.5 million capital raising, according to a Tuesday filing with the Australian and New Zealand bourses.The participation rate was around 52% of entitlements under the retail entitlement offer, with fully participating shareholders also applying for about NZ$4.5 million in additional shares via the retail shortfall facility, per the filing.The remaining around 169.3 million shares, consisting of unsubscribed entitlements from both eligible and ineligible retail shareholders, will be offered for sale through a retail shortfall bookbuild on Tuesday, while the company shares are in trading halt, the filing said.Trading is expected to resume on Wednesday, with any premium above the offer price after deducting withholding tax distributed to eligible shareholders by May 5, the filing added.

$ASX:KMD$NZE:KMD
Research

Research Alert: Alk: Q1 Loss Widens On Fuel Headwinds; Company Suspends Full-year Guidance

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ALK reported Q1 adjusted EPS of -$1.68, widening from -$0.77 in the prior year and missing the -$1.55 consensus, while revenue of $3.3B (+5.2%) met expectations. Unit revenue rose 3.5%, led by strong corporate travel (+19%) and premium segments, but unit costs increased 6.3% from airport, maintenance, and pilot training pressures. The Hawaiian integration and Alaska Accelerate strategy are delivering results ahead of schedule, with Seattle-Tokyo achieving profitability and 90%+ load factors within a year of launch. Management suspended full-year guidance due to fuel cost volatility, though ALK maintains confidence in its long-term trajectory. Looking ahead, Q2 fuel costs are expected to average $4.50 per gallon, representing a 51% sequential increase and $600M headwind equivalent to $3.60/share. We believe the $10 2027 EPS target will be increasingly challenging given current fuel dynamics and guidance suspension, but operational excellence during integration demonstrates management's execution capabilities.

$ALK
Asia

Victory Giant Technology Nets HK$19.9 Billion in Hong Kong IPO Ahead of Debut

Victory Giant Technology (HKG:2476, SHE:300476) raised HK$19.89 billion in net proceeds from its initial public offering in Hong Kong.The final offer price was set at HK$209.88 per H-share, according to a Monday after-market filing with the Hong Kong Stock Exchange.The China-based printed circuit board manufacturer offered 95.9 million H-shares in the global offering.The Hong Kong public offer was 431.15 times subscribed, with a final allocation of 8.3 million shares, representing about 8.2% of the total offering.The international offering was 18.5 times subscribed, with a final allocation of 87.5 million shares, or about 91.3% of the total offering.An over-allocation of 14.4 million shares was made under the global offering.Cornerstone investors, including CPE Rosewood Investment, Janchor Partners Pan-Asian Master Fund, Yunfeng Capital, Morgan Stanley, and HHLR Advisors, were allotted a combined 37.2 million shares, according to the filing.Victory Giant Technology is scheduled to debut on the Hong Kong bourse on Tuesday, April 21.

$HKG:2476$SHE:300476