Update shared on 26 Nov 2025
Analysts have raised their price target for Bank of Hawaii to $75 from $68, citing a favorable deposit environment and expectations that net interest margins may outperform because of asset repricing tailwinds in Hawaii.
Analyst Commentary
Analysts have recently provided updated perspectives on Bank of Hawaii, reflecting both positive and cautious views regarding the company's valuation, growth potential, and operational environment.
Bullish Takeaways
- Bullish analysts highlight the unique deposit backdrop in Hawaii, which may provide greater stability and support for growth compared to peers.
- Expectations for net interest margins to exceed prior forecasts, supported by favorable repricing of fixed-rate assets, are contributing to increased optimism about future earnings.
- Recent upward revisions in price targets reflect confidence that both net interest income and margin will benefit from repositioning of securities and a reduction in negative impacts from swaps.
- Improved earnings estimates suggest the bank is positioned to capitalize on its local market advantages and execute effectively amid the current rate environment.
Bearish Takeaways
- Some bearish analysts remain cautious regarding execution risks, particularly if asset repricing tailwinds diminish or competition in local markets intensifies.
- Concerns persist about the sustainability of margin improvement, especially if deposit costs rise or broader economic headwinds impact the bank’s operational performance.
- While price targets have been increased, ongoing skepticism about the pace and durability of earnings growth underscores a more measured outlook among certain analysts.
What's in the News
- The company completed the repurchase of 10,791,354 shares, representing 24.77% of outstanding shares, under a $695.67 million buyback program announced in 2011 (Key Developments).
- The company reported net loan and lease charge-offs of $2.6 million for the third quarter ended September 30, 2025, with net charge-offs consistent with the previous quarter and a $1.3 million decrease compared to the same period last year (Key Developments).
Valuation Changes
- Fair Value remains unchanged at $72.67, with no adjustment from prior estimates.
- Discount Rate is reported at 6.96%, showing virtually no change.
- Revenue Growth forecast remains consistent, holding at approximately 9.80%.
- Net Profit Margin is also essentially unchanged, remaining around 30.93%.
- Future P/E ratio stays steady at 12.50x, with negligible movement.
Disclaimer
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