First Hawaiian gets 'equal-weight' rating as Stephens starts coverage

First Hawaiian

27/11/2024 18:40

** Stephens initiates coverage of regional lender First Hawaiian
 FHB.O  with "equal-weight" rating and $30 PT, an 8.4% upside to
stock's last close
    ** Brokerage says FHB has several positive attributes that
are compelling, but it is waiting for bigger net interest margin
(NIM) waves
    ** NIM is a key measure of banking profitability which shows
how much a bank is earning in interest on loans against the
amount it pays depositors
    ** Brokerage sees modest NIM headwinds over the next several
quarters for FHB given its asset sensitivity
    ** Asset sensitive banks are those institutions whose assets
are expected to reprice faster than their liabilities
    ** Such banks are negatively affected by a fall in interest
rates, with FHB expecting a 3.2% hit to its net interest income
from ~100 basis points in rate cuts
    ** As of last close, FHB shares up 21.1% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com))