After trading as high as $12.50 on January 12th, shares of BOQ have followed the same “sideways-to-lower” pattern as the rest of the Australian banking names.
With first-half 2017 results due on March 30th, this pattern could continue and even breach the February low price of $11.30.
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The headwinds of negative loan growth and falling margins don’t appear to be fully priced-in at current levels.
The trading multiples of BOQ are not cheap, and with 2017 EPS growth estimated at under 3%, we believe an $11.00 price is more likely than a $12.00 price over the medium-term.
