Banks are looking at improving earnings outlooks, with rates set to
continue to rise and improving loan demand giving them better-earning
options for their capital. Still, there are increasing uncertainties
about the pace of rate hikes, as well as opportunities for operating
cost leverage
in 2022. I believe BOK Financial (NASDAQ:BOKF)
has above-average loan growth prospects in 2022 and 2023, but I believe
some of that leverage is tempered by less promising outlooks in the
fee-based businesses and a structurally less profitable business than
many peers. At this point I’m
not all that bullish on BOK Financial shares, even with the
year-to-date underperformance. I like the bank's leverage to energy
lending and the attractive Texas loan market, but higher expenses are a
drag and I just don’t find the valuation all that compelling now.
Read the full article at Seeking Alpha:
BOK Financial Seems Overvalued Relative To Its Growth Prospects And Profitability
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