Bank of Queensland Faces Extremely Challenged Near-Term Outlook, Says Jefferies

MT Newswires Live

Apr 23

Bank of Queensland (ASX:BOQ) is reeling from an "extremely challenged" near-term outlook following weaker-than-expected fiscal 2026 first-half results, Jefferies said in a note on Wednesday.

The investment firm lowered its fiscal 2026 and 2027 EPS estimates by 3% due to higher costs and increased provisions after the bank reported a 4% decline in half-yearly cash earnings

Jefferies said management might be overstating the impact of its new capital partnership with Challengers, adding that it expects it will be hard to lift returns to cost-of-capital levels. However, the deal should provide a positive tailwind to the company.

The bank's loan book remains in run-off amid a sluggish housing market, which is not expected to return to growth until fiscal 2027.

Jefferies reaffirmed its underperform rating, noting the stock is trading at around a 25% discount to book value, and cut its price target to AU$5.64 from AU$5.76.

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However, the deal should provide a positive tailwind to the company.</p><p>The bank's loan book remains in run-off amid a sluggish housing market, which is not expected to return to growth until fiscal 2027.</p><p>Jefferies reaffirmed its underperform rating, noting the stock is trading at around a 25% discount to book value, and cut its price target to AU$5.64 from AU$5.76.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BOQ.AU","symbol_name":"BANK OF QUEENSLAND LTD","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2629079958","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2629079958","pubTimestamp":1776898119,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. 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