Morgan Stanley analyst Manan Gosalia maintained a Hold rating on Bank OZK yesterday and set a price target of $63.00.
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Manan Gosalia has given his Hold rating due to a combination of factors affecting Bank OZK’s financial outlook. The bank’s guidance for net interest income (NII) in the fourth quarter of 2025 was lower than expected, primarily due to the time lag in repricing loans and deposits. This lag is anticipated to take a couple of quarters to balance out, impacting the bank’s earnings projections for 2026 and 2027.
Additionally, loan growth is expected to be subdued in 2026, with the bank projecting mid-single-digit growth, which is below market expectations. This is mainly due to higher repayments in their Real Estate Specialties Group (RESG). Furthermore, the bank’s expense guidance for 2026 was higher than consensus estimates, which could further pressure earnings. Despite these challenges, the bank’s credit situation showed some positive signs, with significant asset sales at book value and continued support from sponsors for ongoing projects.
In another report released on October 17, KBW also maintained a Hold rating on the stock with a $53.00 price target.