DA Davidson adjusted its recommendation on BOK Financial (BOKF), downgrading the stock from Buy to Neutral while raising its price target to $135 from $125. The firm said the move reflects a reevaluation of the stock's upside rather than a change to its underlying earnings outlook.
At the time of the revision, BOK Financial shares were trading at $132.12, putting the stock close to its 52-week high of $138.09. The shares have delivered a strong run recently, gaining 26.85% over the past six months.
DA Davidson highlighted valuation as the principal restraint on further upside. The firm values BOK Financial at 13.4 times its 2026 earnings estimate, a premium to the KRX median multiple of 10.7 times. The company’s reported trailing metrics also reflect an elevated valuation, with a current P/E of 14.39 and a Price/Book of 1.35. Separately, analysis shows the shares appear slightly undervalued on a Fair Value calculation, indicating mixed signals between relative and intrinsic valuations.
Notably, DA Davidson’s EPS forecasts for 2026 and 2027 rank as the highest among analysts covering the bank, which underscores the firm’s expectations for strong revenue progression over the next two years. The research note singled out several supportive elements underpinning those estimates:
- Projected expansion in net interest margin;
- Above-average loan growth forecasts relative to peers;
- Diversified fee income streams that contribute to revenue resilience;
- Expectations that expense growth will moderate, aiding operating leverage.
Despite those constructive drivers, DA Davidson said that after it shifted its target multiple to apply to 2027 EPS and discounted that figure back by 8%, the implied upside versus the current share price was limited. That constrained upside is the central reason for lowering the recommendation to Neutral, even as the firm retains relatively bullish earnings estimates. The firm also noted that seven analysts have recently raised their earnings forecasts for BOK Financial.
Operational results from the company’s latest quarter provide context for the analyst activity. BOK Financial posted fourth-quarter 2025 adjusted earnings per share of $2.48, beating consensus analyst forecasts of $2.17 by 14.29%. Revenue for the quarter came in at $560.2 million versus forecasted revenue of $550.26 million. Management attributed the outperformance to stronger fee income and lower provisions for loan losses. The company also reported quarterly loan growth that annualized at 13%.
Following the quarterly release, other brokerages updated their views. KBW raised its price target to $135 while maintaining a Market Perform rating. RBC Capital increased its price target to $132 from $124, citing a solid quarter characterized by broad-based loan growth and margin expansion. Both firms pointed to the absence of loan loss provisions and active share repurchases as positive contributors to the quarter.
The combination of a beat on earnings and revenue, strong loan growth, and buybacks prompted several analysts to lift targets, but DA Davidson’s valuation-focused recalibration ultimately led it to take a more cautious stance on the stock’s near-term upside. Investors weighing BOK Financial should consider both the favorable operating trends and the premium in valuation relative to peers when assessing potential returns.