Earnings Improvement And Market Resilience Will Sustain Long-Term Demand

First Hawaiian’s analyst price target has been raised from $26.13 to $26.89. Analysts cite improved earnings projections supported by higher net interest income, stronger fees, and lower non-interest expenses.

Analyst Commentary

Analysts have updated their perspectives on First Hawaiian in light of recent quarterly results, offering insights into both the strengths and challenges facing the company.

Bullish Takeaways

• Bullish analysts are raising earnings per share forecasts through 2027, reflecting expectations for sustained growth in profitability.
• Recent improvements in net interest income are enhancing core revenue generation and supporting a higher valuation outlook.
• Strength in fee income suggests diversified revenue streams, which contribute to increased resilience in various market conditions.
• Lower non-interest expenses are boosting operating efficiency and signaling effective cost controls and improved execution.

Bearish Takeaways

• Despite a higher price target, some analysts maintain a neutral view due to limited upside potential relative to recent share price movements.
• Concerns remain about the sustainability of improved net interest income if market conditions shift.
• Growth projections, while raised, are still tempered by cautious assumptions about the pace of fee income expansion and cost management.
• Wider industry headwinds and regulatory risks continue to weigh on sentiment and make further meaningful upticks in valuation more challenging.

What's in the News

• From July 1, 2025 to September 30, 2025, First Hawaiian repurchased 964,000 shares for $24 million, completing the buyback of 2,980,521 shares totaling $74.21 million as part of a program announced on January 31, 2025 (Key Developments).
• Net charge-offs for the third quarter ended September 30, 2025, were $4.2 million, or 0.12% of average loans and leases annualized. This is up from $3.3 million, or 0.09%, in the previous quarter (Key Developments).

Valuation Changes

• The consensus analyst price target has risen slightly from $26.13 to $26.89.
• The discount rate remains unchanged at 6.78%.
• The revenue growth estimate has increased modestly from 5.76% to 5.95%.
• The net profit margin has improved from 27.71% to 29.97%.
• The future P/E ratio has declined from 13.86x to 12.48x, indicating a lower valuation relative to projected earnings.