Bank of Queensland has switched to Algo Engine buy conditions.
After stripping out the cost and bad debt movements, the 1H24 result was soft. In a difficult retail banking outlook, the path to restoring profitability is unclear.
Stop loss @ $5.76
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Bank of Queensland is under Algo Engine sell conditions.
BOQ has reported 1H22 cash earnings of $268m, supported by credit loss provision releases and one-off revenue gains. The underlying business reflected -5% profit growth and forward revenues in the next 12 months are forecast to remain flat.
Suncorp Group is under Algo Engine sell conditions and we expect selling pressure to build below the $13.00 resistance level.
Short SUN with stops above $13.00
29/10 update:
Suncorp Group is under Algo Engine sell conditions and we expect selling pressure to build below the $13.00 resistance level.
Short SUN with stops above $13.00
Bank of Queensland is under Algo Engine sell conditions and we expect selling pressure to build below the $10.00 resistance level.
Short BOQ with stops above $10.00
Bank of Queensland announced 1H19 cash earnings of $167m which is below the downgraded guidance the company provided in February and 8% below the same time last year.
The result continues to highlight the struggles the regional banks have in the current environment.
An interim dividend of $0.34 was declared, which is a reduction from 2018 levels.
The chart below shows the Algo Engine sell signals in BOQ, starting in early 2018 at $13.00. BOQ now trades sub $9.00 and is likely to continue lower.
Bendigo reported earnings slightly below market consensus.
1H19 cash profit came in at $220m, however, we continue to see challenging conditions for the regional banks.
BEN and BOQ both display lower high formations and are under Algo Engine sell signals.
Our ALGO engine has shown a sell signal for BOQ since August 31st at $11.50.
The share price got a boost at yesterday’s AGM trading up to $11.35 just after the FY18 NPAT data was released.
However, as the trading day progressed, the lower margins on the current loan book combined with large software write offs pressured the share price back below $11.00.
We still prefer the short side of BOQ with a downside target of $9.60.
Bank Of Queensland
Our ALGO engine triggered a sell signal for BOQ on August 31st at $11.49.
Since then the share price has traded sideways to lower and has now broken a technical support level near $11.05.
BOQ will hold its AGM next Thursday, October 4th.
In addition to warnings about funding pressures and contracting margins, we also expect the bank to announce a $30 million restructuring charge during the meeting.
On balance, the combination of technical and fundamental weakness points to a return to the June lows near $9.60.
Bank of Queensland
Level 29 Chifley Tower
2 Chifley Square
Sydney, NSW 2000
1300 614 002
Investor Signals Pty Ltd
ABN 44 143 555 453
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