Has the Bank of Queensland share price got 25% upside baked in?

The Bank of Queensland Limited (ASX: BOQ) share price has struggled year to date, but one analyst is tipping its fortunes to turn around.

Bank of Queensland shares have lost nearly 14% so far this year. For perspective, the S&P/ASX 200 (ASX: XJO) has fallen 8.45% in the year to date.

Let’s check the outlook for the Bank of Queensland share price.

Significant upside

Analysts at Citi are optimistic about the Bank of Queensland share price. Citi has put a buy rating and a $8.75 price target on the regional bank’s shares. This is a 26% upside on the current share price of $6.93.

Analysts are predicting cost synergies from the Members of Equity Bank (ME Bank) acquisition to be supportive of earnings growth. However, Citi also noted mortgage loan growth could slow amid interest rate rises.

The Reserve Bank of Australia (RBA) lifted rates by 0.25% on Tuesday. However, the market had been expecting a rate rise of 0.5%.

In more good news for shareholders, Citi is predicting Bank of Queensland will dish out a fully franked dividend per share of 46 cents in FY22.

Meanwhile, in FY23, Citi is predicting Bank of Queensland will deliver a fully franked dividend of 50 cents per share.

Bank of Queensland delivered an interim dividend of 22 cents per share earlier this year.

The company is due to release its full-year financial results for the 2022 financial year on 12 October.

Share price snapshot

Bank of Queensland shares have shed nearly 27% in the past 12 months, but have climbed 4.52% in the past week.

For perspective, the ASX 200 has lost nearly 6% in the past year.

Bank of Queensland has a market capitalisation of about $4.48 billion based on the current share price.

The post Has the Bank of Queensland share price got 25% upside baked in? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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