The Bank of Queensland Limited (ASX: BOQ) share price has had a rough start to 2022.
It’s currently 9.6% lower than it was at the start of the year. As of Wednesday’s close, the Bank of Queensland share price is $7.52.
For comparison, the S&P/ASX 200 Index (ASX: XJO) has slumped 5.4% year to date while the S&P/ASX 200 Financials Index (ASX: XFJ) is down just 0.8%.
But one broker is predicting big things to come for the bank’s stock. Let’s take a look.
Could the Bank of Queensland share price reach $11?
The future is bright for the Bank of Queensland’s stock, according to one Aussie broker.
That’s right, Morgans believes the Bank of Queensland share price could have a 45% upside, as The Motley Fool Australia’s James Mickleboro reported last week.
The broker believes the stock is a good entry point for would-be ASX bank investors due to the company’s recent acquisition of ME Bank.
In fact, it noted the cost synergies born from the acquisition are coming to fruition faster than expected. It’s also impressed by the company’s ongoing transformation.
On the back of its positive sentiment, Morgans has slapped Bank of Queensland’s stock with a price target of $11, reports Mickleboro. That suggests a 46% upside on the stock’s current value.
On top of that, the broker expects the bank will pay out 49 cents in dividends in financial year 2022.
That would see the Bank of Queensland trading with a 6.5% dividend yield at its current share price.
However, if the broker’s share price prediction proves accurate, 49 cents of dividends over 12 months would leave it with an entirely decent 4.45% dividend yield.
The bank has already agreed to provide a 22-cent dividend for the first half of this financial year.
Morgans also expects the bank’s dividends to increase to 54 cents in financial year 2023.
The post Could Bank of Queensland shares deliver 46% upside AND a 4.5% dividend yield in 2022? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Bank of Queensland right now?
Before you consider Bank of Queensland, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bank of Queensland wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- How does the Bank of Queensland dividend compare to the other ASX 200 banks?
- 2 high-yield ASX 200 dividend shares to fight inflation according to brokers
- How has the Bank of Queensland share price travelled since the company’s half-year results?
- Is there upside in the Bank of Queensland share price in May?
- Analysts name 2 ASX dividend shares to buy with growing yields
Motley Fool contributor Brooke Cooper 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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