JPMorgan Chase Raises First Hawaiian Stock Target Amid Mixed Analyst Ratings

In a recent research report, JPMorgan Chase & Co. has increased its price target for First Hawaiian (NASDAQ:FHB) from $25.00 to $25.50, while maintaining an “underweight” rating on the bank’s stock. This adjustment, reported by Benzinga, reflects a slight optimism in the stock’s potential despite broader mixed reviews from other analysts.

Other financial institutions have taken a more cautious approach. Wells Fargo & Company recently decreased their target price for First Hawaiian from $24.00 to $22.00, labeling the stock as “underweight.” Similarly, Keefe, Bruyette & Woods adjusted their price objective from $30.00 to $28.00, assigning a “market perform” rating. Barclays also revised its target price downward from $30.00 to $27.00, maintaining an “equal weight” rating.

Mixed Analyst Ratings and Market Performance

These varied ratings highlight the uncertainty surrounding First Hawaiian’s market performance. According to MarketBeat data, the stock currently holds a consensus rating of “Hold,” with an average target price of $27.36. Despite the cautious outlook from some analysts, First Hawaiian’s stock opened at $25.72 on Tuesday, marking a 3.0% increase in trading.

First Hawaiian’s market capitalization stands at $3.23 billion, with a price-to-earnings ratio of 13.98 and a beta of 0.83, indicating moderate volatility. The stock’s 50-day simple moving average is $23.80, while its 200-day average is $24.79. Over the past year, the stock has fluctuated between a low of $20.28 and a high of $28.80.

Financial Performance and Future Projections

First Hawaiian recently reported its earnings for the quarter ending April 23rd, posting earnings per share (EPS) of $0.47, slightly above the consensus estimate of $0.46. The bank’s revenue for the quarter was $211 million, surpassing the expected $210.24 million. This marks a 2.5% increase compared to the same period last year, when it reported $0.42 EPS.

The bank’s return on equity is reported at 8.99%, with a net margin of 20.36%. Analysts predict that First Hawaiian will achieve an EPS of 1.95 for the current fiscal year, reflecting cautious optimism about its financial health and future growth.

Dividend Announcement and Institutional Investments

In addition to its earnings report, First Hawaiian declared a quarterly dividend of $0.26 per share, which was paid on May 30th to stockholders of record as of May 19th. This dividend equates to an annualized payout of $1.04 per share, yielding 4.04%. The company’s payout ratio currently stands at 56.52%.

Institutional investors have shown significant interest in First Hawaiian, with several hedge funds and asset management firms increasing their holdings. Caitong International Asset Management Co. Ltd and Versant Capital Management Inc are among those that have boosted their positions, while new investments have been made by Jones Financial Companies Lllp and Headlands Technologies LLC.

About First Hawaiian and Market Outlook

First Hawaiian, Inc operates as a bank holding company for First Hawaiian Bank, offering a diverse range of banking products and services across its Retail Banking, Commercial Banking, and Treasury segments. The bank continues to serve a broad customer base in the United States, providing deposit products such as checking, savings, and time deposit accounts.

While the current analyst ratings reflect a mixed outlook, the slight upward revision by JPMorgan Chase & Co. suggests potential for modest growth. As First Hawaiian navigates the evolving economic landscape, its performance will be closely watched by investors and analysts alike.

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