Ryan Nash, an analyst from Goldman Sachs, maintained the Sell rating on First Hawaiian. The associated price target is $25.00.
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Ryan Nash has given his Sell rating due to a combination of factors that, despite a solid quarterly performance, raise concerns about First Hawaiian’s future prospects. While the bank reported higher-than-expected earnings per share and core pre-provision net revenue, these were driven by better-than-anticipated net interest income and lower core expenses. However, the focus is shifting towards net interest income, given the mixed repricing of fixed-rate assets and the need for better deposit repricing to maintain performance.
Additionally, there are concerns regarding the increase in non-performing assets and special mentions, which rose during the quarter. This, coupled with uncertainties about loan growth, particularly in commercial and industrial loans, and the potential impact of construction paydowns, adds to the cautious outlook. Furthermore, while expenses have been managed well, there is uncertainty about whether this trend will continue. These factors contribute to a cautious stance, leading to the Sell rating.
Nash covers the Financial sector, focusing on stocks such as Synchrony Financial, Bread Financial Holdings, and Capital One Financial. According to TipRanks, Nash has an average return of 12.2% and a 67.86% success rate on recommended stocks.