What’s on the cards for the Bank of Queensland (ASX:BOQ) share price in 2022?

What New Year’s resolution does the Bank of Queensland have for 2022?
The post What’s on the cards for the Bank of Queensland (ASX:BOQ) share price in 2022? appeared first on The Motley Fool Australia. –

The Bank of Queensland Limited (ASX: BOQ) share price is testing its shareholders’ patience this year. Despite putting the pedal to the metal for the first three-quarters of the year — rising nearly 30% — shares in the 158-year-old bank are now only up 5.7% year-to-date.

For context, the S&P/ASX 200 Index (ASX: XJO) has handed out a gain of 9.1% (before dividends). An even more comparable comparison is the ASX financials sector. The overall sector has pulled a gain of more than 18% since the start of 2021, mostly thanks to the majority of the big four conjuring up 15% or more increases.

Nonetheless, as we get closer to crossing the threshold from one year to the next, it’s time to slide the Bank of Queensland share price under the microscope and get a sense of where it could be heading in 2022.

New year, same old bank

Many of us like to create New Year’s resolutions, though few follow through on the idealised ambitions. In 2022, shareholders will be watching that the bank follows through on its pre-commitments.

This follows a barrage of shareholder complaints regarding the Bank of Queensland’s lack of current technology at the annual general meeting (AGM) on Tuesday.

To which the bank admitted it had underinvested in during the past. However, chair Patrick Allaway gave shareholders the commitment that a digital transformation would be underway as part of a new strategy launched last year.

As part of the grilling for the bank’s outdated tech, Australian Shareholders’ Association’s Kelly Buchanan said:

For years and years, BoQ has been promising to get on top of its antiquated technology system. How can your long-suffering shareholders be confident, that with the acquisition of ME Bank, this time it’s different?

While current technology seems to be a problem for numerous major Australian banks, the Bank of Queensland has the added complexity of recently tieing up a substantial amount of money in the acquisition of ME Bank. That investment came to a total of $1.325 billion.

What are analysts expecting for the Bank of Queensland share price?

It appears brokers are optimistic about a good year for the Bank of Queensland share price. In fact, two brokers currently have price targets that are above the financial institution’s current valuation.

Firstly, the team at Citi has a buy rating on the bank, alongside a $10 price target. This would suggest a potential upside of 25% to the current Bank of Queensland share price.

Secondly, analysts at Goldman Sachs are expecting good things from the Aussie bank in 2022. The broker also has a buy rating and a $9.67 price target.

Finally, based on its latest earnings the Bank of Queensland share price is trading on a price-to-earnings (P/E) ratio of ~12.8 times. While this is above the industry average, investors could be paying a premium for the bank’s impressive growth between FY20 and FY21.

The post What’s on the cards for the Bank of Queensland (ASX:BOQ) share price 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 nearly 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 August 16th 2021

More reading

Goldman Sachs names 2 ASX 200 shares to buy

Bank of Queensland (ASX:BOQ) shares: $8 one day, $10 the next?

Top brokers name 3 ASX shares to buy today

Why Bank of Queensland, Imugene, Webjet, and Zip shares are pushing higher

Why the Bank of Queensland (ASX:BOQ) share price is racing 5% higher today

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!