市场见解

40% drawdown: The Bank of Queensland (ASX:BOQ) share price is struggling. Is it a buy?

Let’s have a look at what BOQ has to offer in 2022.
The post 40% drawdown: The Bank of Queensland (ASX:BOQ) share price is struggling. Is it a buy? appeared first on The Motley Fool Australia. –

ASX financials are front and centre again this week, as rising yields on US Treasuries and a rotation out of risk assets play havoc on international equity markets.

Investors are flocking to defensive classes – such as financials –  in the wake of shifting interest rates talk emerging from central banks in Australia, the US, and Europe.

For instance, the iShares U.S. Financials ETF (NASDAQ: IYF) saw inflows of $126.3 million in the final week of December. That’s a 5% gain on the same time in 2020.

Meanwhile, the Financial Select Sector SPDR Fund (NYSEARCA: XLF) saw the highest volume of inflows last week, reaching $2.34 billion.

In comparison, the SPDR S&P 500 ETF Trust (ASX: SPY) – which is currently 27% weighted towards the rates sensitive tech sector – saw net outflows of $6,523.72 million in the first week of 2022 alone.

Why then, is the Bank of Queensland Ltd (ASX: BOQ) share price struggling of late? It is currently in a 40% drawdown, meaning that’s how far it’s trading off its previous record high.

Let’s take a look at the situation.

What’s up with the BOQ share price?

Over a much wider time frame, say the last 5 years, the downward pressure on the BOQ share price has been more than evident.

The company’s shares have trended downwards from a high of $12.47 back in 2018 and have shown little sign of recovery since.

The COVID-19 selloff in March 2020 was unkind to BOQ shares. Only in October 2021 did the company return to its pre-pandemic levels.

However, whilst it’s prudent to consider a stock’s history, today’s forward estimates on the BOQ share price are equally as important. As legendary fund manager Peter Lynch correctly states, the market prices shares on a combination of past earnings history and future earnings expectations.

Fast forward to the present and the commentary on BOQ is centred around its ability to absorb sector-wide pressures to net interest margins (NIMs) in FY22.

Goldman Sachs considers BOQ’s deposit book is more rate-sensitive while Jefferies is upbeat on the bank’s cost-budgeting measures targeted for 2022. Both are positive inflection points, according to the brokers.

The bank is set to embark on a number of new year’s resolutions as well, following a flurry of complaints at its AGM last year about the old technology underpinning its operations.

As such, the bank has committed to its new “digital transformation strategy”, launched last year.

So, is it a buy in 2022?

When examining the list of brokers provided by Bloomberg Intelligence, the majority of coverage on BOQ is bullish for the remainder of 2022.

Citing the bank’s net interest margin, Jefferies bakes in a 9 basis point contraction in NIM from the previous year in its forward estimates on BOQ.

It values the bank at a bullish $8.50 per share, alongside the team at Citi who rate it a buy on a $10 per share price target.

Goldman Sachs has BOQ as a buy as does Macquarie, each valuing the company at $9.67 and $10 per share respectively.

Meanwhile, JP Morgan favours BOQ the most out of its ASX financial shares. It values the company at $9.80 a share. It also forecasts cash earnings of $507 million for the bank in FY22.

When comparing the BOQ share price with Commonwealth Bank of Australia Ltd (ASX: CBA), Australia’s largest bank by market cap, most brokers unquestionably prefer BOQ shares right now.

With this in mind, it’s not surprising to see more than 70% of analysts covering BOQ advocate the share as a buy, as opposed to just 1 broker urging clients to sell.

As such, going by these predictions, BOQ could be a buy in 2022. However, with equity markets, and risk assets in general, poised for a year of lumpy performance, only time, market mechanics, company fundamentals, and Captain Hindsight will tell.

The post 40% drawdown: The Bank of Queensland (ASX:BOQ) share price is struggling. Is it a buy? 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

Is the Bank of Queensland (ASX:BOQ) share price a better buy than CBA? Here’s what top brokers say

Bank of Queensland (ASX:BOQ) hoses down Humm (ASX:HUM) takeover rumours

Is it a buy? Top brokers’ opinion on the Bank of Queensland (ASX:BOQ) share price

Why is December being so kind to Bank of Queensland (ASX:BOQ) shares?

Own Bank of Queensland (ASX:BOQ) shares? Here are the key dates to watch in 2022

The author has no positions 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.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

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!