Analyst Timur Braziler of Wells Fargo reiterated a Sell rating on First Hawaiian, retaining the price target of $24.00.
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Timur Braziler has given his Sell rating due to a combination of factors impacting First Hawaiian’s financial outlook. Despite a better-than-expected earnings report for the third quarter, Braziler views the growth as temporary, driven by fixed asset repricing and a stabilized balance sheet, which may not sustain in the face of anticipated rate cuts and a potential recession in Hawaii.
Moreover, while the bank experienced robust deposit growth, the decline in commercial and industrial balances and the lack of loan growth for two consecutive years raise concerns about its future performance. The management’s guidance for flat loan growth in 2025 and uncertainty about better growth in 2026 further contribute to the cautious outlook. Additionally, the expected decrease in fees and limited net interest margin expansion in the upcoming quarters suggest challenges in maintaining earnings momentum.
According to TipRanks, Braziler is a 3-star analyst with an average return of 4.6% and a 54.02% success rate. Braziler covers the Financial sector, focusing on stocks such as OFG Bancorp, Bok Financial, and First Bancorp Puerto Rico.
In another report released on October 24, Barclays also maintained a Sell rating on the stock with a $26.00 price target.