Morgan Stanley cuts PT for Australia's Bank of Queensland

Bank of Queensland

06/10/2023 03:39

** Analysts at Morgan Stanley expect a weaker FY23E for
Australian local lender Bank of Queensland  BOQ.AX  
    ** Rate stock "underweight"; cut PT to A$5.5 from A$5.6
citing one-off charges in the year 
    ** Outlook for FY24E and FY25E earnings per shares unchanged
    ** Brokerage sees 19.5% h/h decline in cash profit, 5% h/h
decline in rev 
    ** We see transformation execution risk, limited dividend
growth, low return profile with moderate capital generation for
BOQ - MS 
    ** Adds, co remains in an EPS downgrade cycle given weak
growth volume growth, pressure in margins
    ** Shares of the co have fallen 18.6% YTD as of last close 

($1 = 1.5689 Australian dollars)

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com))