The Bank of Queensland Ltd (ASX: BOQ) share price is pushing higher again on Thursday.
In morning trade, the regional bank’s shares are up 1% to $7.65.
This means the Bank of Queensland share price is now up 11% this week.
Why is the Bank of Queensland share price storming higher?
Investors have been buying the bank’s shares this week following the release of its full year results.
Although Bank of Queensland’s results fell a touch short of expectations, its exiting net interest margin (NIM) got investors excited and appears to show that rising interest rates are boosting profitability in the banking sector.
It was for this reason that the big four banks all charged higher along with the Bank of Queensland share price on Wednesday.
Can its shares keep rising?
According to a note out of Goldman Sachs, its analysts have retained their neutral rating on the company’s shares this morning.
However, it is worth noting that the broker’s price target of $8.51 still implies potential upside of 11% for investors. And that’s before dividends!
Goldman was pleased with Bank of Queensland’s exiting NIM, but fears that rising costs could hold it back in FY 2023. It explained:
We reiterate our Neutral call on BOQ. Despite valuation support, we believe its NIM leverage will ultimately underperform peers and its expenses will remain under pressure given the current inflationary environment and headwinds from running legacy systems along with building its new digital bank, which are expected to offset ME Bank synergies and restructuring benefits.
Citi remains bullish
One broker that is more bullish on the Bank of Queensland share price is Citi.
This morning the broker has retained its buy rating and $8.75 price target on the bank’s shares.
This implies potential upside of 14% for investors over the next 12 months.
The post Brokers give their verdict on the Bank of Queensland share price appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro 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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