It hasnât been a great year for the Bank of Queensland Ltd (ASX: BOQ) share price.
Since the start of 2022, the regional bank has seen its shares fall over 17% to $6.87.
In light of this, investors may be wondering if the Bank of Queensland share price is now trading at an attractive level to start an investment.
Is the Bank of Queensland share price good value?
According to a recent note out of Goldman Sachs, it doesnât believe investors should be picking up shares just yet.
Though, it is worth noting that the broker does see material upside potential for its shares.
Goldman currently has a neutral rating and $8.16 price target on the bankâs shares, which implies potential upside of 19% for investors over the next 12 months.
Why is it not a buy?
The broker highlights two key points for why it isnât as positive on the regional bank as it once was. These include its slowing momentum and its lack of exposure to rising rates. It explained:
1. BOQâs volume momentum has slowed recently and while still tracking above system at 1.4x system average (on a 3 month annualised basis), this is somewhat below BEN at 2.2x.
2. BOQâs margin is not as exposed to higher cash rates and it therefore captures less upside from higher rates. We also note that its recent deposit pricing has shown greater levels of sensitivity to higher cash rates than either the majors or BEN.
Instead of Bank of Queensland, the broker thinks investors should be buying Westpac Banking Corp (ASX: WBC) shares.
Goldman has Australiaâs oldest bank on its conviction buy list with a price target of $26.55. This implies potential upside of 25% for investors from current levels.
The post Here’s what a top broker is saying about the Bank of Queensland share price appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of August 4 2022
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- Savings or dividends? What these 3 ASX bank shares are offering for income
- Here are the top 10 ASX 200 shares today
- Top brokers name 3 ASX shares to buy today
- Is the Bank of Queensland share price undervalued compared to other ASX banks?
- Why did the Bank of Queensland share price lag the other ASX 200 banks today?
Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/7UmSkOs
Leave a Reply