Analyst Ratings January 27, 2026

Stephens Lifts Bank of Hawaii Target to $83 After Strong Quarter; Rating Remains Overweight

Analyst raises 2026 EPS view and cites improving margins and loan growth after better-than-expected fourth-quarter results

By Jordan Park BOH
Stephens Lifts Bank of Hawaii Target to $83 After Strong Quarter; Rating Remains Overweight
BOH

Stephens increased its price target on Bank of Hawaii to $83 from $78 and maintained an Overweight rating following a stronger-than-expected fourth quarter. The move accompanies upward revisions to 2026 operating EPS and positive commentary on net interest margin and loan growth, while the bank reported robust deposit trends and continued dividend reliability.

Key Points

  • Stephens raised its price target on Bank of Hawaii to $83 from $78 and kept an Overweight rating - impacts regional banking and financials sectors.
  • Fourth-quarter operating EPS of $1.38 beat Stephens’ $1.16 estimate and the Street’s $1.26 consensus; pre-provision net revenue surpassed forecasts by 6.7% (Stephens) and 7.4% (Street) - relevant for bank earnings and investor sentiment.
  • Stephens lifted its 2026 operating EPS to $5.65, citing better net interest margin prospects and slightly stronger loan growth; the bank projects loan growth of low-single-digit to mid-single-digit in 2026 compared to roughly flat in 2025 - influences credit and lending outlooks

Stephens on Tuesday raised its price objective for Bank of Hawaii to $83.00 from $78.00 and kept an Overweight rating on the shares. The new target corresponds with the stock trading at $75.11, just shy of its 52-week high of $76, a positioning the firm says leaves room for upside under its Fair Value assessment.

The price-target bump follows a fourth-quarter operating earnings-per-share print of $1.38 for Bank of Hawaii, which outpaced Stephens’ internal estimate of $1.16 and the broader Street consensus of $1.26. Pre-provision net revenue also topped expectations, coming in 6.7% above Stephens’ forecast and 7.4% ahead of consensus, underscoring the quarter’s revenue resilience.

Valuation metrics cited in the note highlight a price-to-earnings ratio of 15.29 and a PEG ratio of 0.48, metrics the research team described as indicating an attractive valuation relative to the firm’s growth outlook.

On the forward-looking front, Stephens raised its 2026 operating EPS estimate by 5% to $5.65. The revision reflects anticipated improvement in net interest margin and modestly stronger loan growth, tempered somewhat by higher operating expenses the firm expects to persist.

Bank management provided more constructive loan growth commentary, moving to a projection of low-single-digit to mid-single-digit growth in 2026 versus roughly flat loan growth in 2025. Stephens also expects solid first-quarter net interest margin trends, forecasting a 10 basis point increase. Management noted a target for net interest margin to approach 2.90% by year-end, compared with the Street’s pre-quarter estimate of 2.73% for fourth-quarter 2026.

On the deposit side, non-interest-bearing deposits showed strength in the fourth quarter, with end-of-period levels up 26% on a linked-quarter annualized basis. Management expressed a belief that growth in non-interest-bearing deposits can continue, though likely at a more moderate pace than the recent surge.

In a separate set of reported results, Bank of Hawaii Corporation disclosed fourth-quarter 2025 earnings that outperformed analyst expectations. The company recorded earnings per share of $1.39, above the $1.26 forecast, representing a 63% year-over-year increase. Revenue for the quarter was $189.65 million, versus an anticipated $184.83 million.

Investors reacted positively to the upside surprise in quarterly results. The company’s earnings call did not include discussion of recent mergers or acquisitions, and there were no reported analyst upgrades or downgrades in the immediate aftermath of the release. The firm also continues a long-standing dividend track record, having paid dividends for 54 consecutive years, with the current yield at 3.73%.

Overall, Stephens’ note ties the stronger near-term performance to improving margin dynamics and incremental loan growth, while flagging operating expense pressures. The combination of better-than-expected fourth-quarter results, an increased 2026 EPS outlook, and a maintained Overweight rating form the basis for the higher $83 price target.

Risks

  • Higher operating expenses partially offset expected benefits from improved net interest margin - risk for bank profitability and financial sector earnings.
  • Loan growth remains uncertain despite more optimistic guidance; management expects low-single-digit to mid-single-digit growth in 2026 versus approximately flat in 2025 - risk to asset-growth projections and regional banking momentum.
  • Non-interest-bearing deposit growth may slow from the robust 26% linked-quarter annualized increase reported in the fourth quarter, creating uncertainty around low-cost funding trends - affects deposit and liquidity management for the bank

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