In a preview of Bank of Queensland’s FY21 results on October 13, Morgans forecasts a cash profit of $406m, excluding the contribution from ME Bank over July and August. A fully franked final dividend of 27cps is estimated. The Add rating and $10.80 target are unchanged.
The analyst expects the bank’s guidance for a flat net interest margin (NIM), when comparing the first half versus the second, to be met. The potential for improvement in cost efficiency is considered key to an improving return on tangible equity (ROTE) path.
Sector: Banks.
Target price is $10.80.Current Price is $9.73. Difference: $1.07 – (brackets indicate current price is over target). If BOQ meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
