Stephens on Tuesday raised its price objective for Bank of Hawaii to $83.00 from $78.00 and kept an Overweight rating on the shares. The new target corresponds with the stock trading at $75.11, just shy of its 52-week high of $76, a positioning the firm says leaves room for upside under its Fair Value assessment.
The price-target bump follows a fourth-quarter operating earnings-per-share print of $1.38 for Bank of Hawaii, which outpaced Stephens’ internal estimate of $1.16 and the broader Street consensus of $1.26. Pre-provision net revenue also topped expectations, coming in 6.7% above Stephens’ forecast and 7.4% ahead of consensus, underscoring the quarter’s revenue resilience.
Valuation metrics cited in the note highlight a price-to-earnings ratio of 15.29 and a PEG ratio of 0.48, metrics the research team described as indicating an attractive valuation relative to the firm’s growth outlook.
On the forward-looking front, Stephens raised its 2026 operating EPS estimate by 5% to $5.65. The revision reflects anticipated improvement in net interest margin and modestly stronger loan growth, tempered somewhat by higher operating expenses the firm expects to persist.
Bank management provided more constructive loan growth commentary, moving to a projection of low-single-digit to mid-single-digit growth in 2026 versus roughly flat loan growth in 2025. Stephens also expects solid first-quarter net interest margin trends, forecasting a 10 basis point increase. Management noted a target for net interest margin to approach 2.90% by year-end, compared with the Street’s pre-quarter estimate of 2.73% for fourth-quarter 2026.
On the deposit side, non-interest-bearing deposits showed strength in the fourth quarter, with end-of-period levels up 26% on a linked-quarter annualized basis. Management expressed a belief that growth in non-interest-bearing deposits can continue, though likely at a more moderate pace than the recent surge.
In a separate set of reported results, Bank of Hawaii Corporation disclosed fourth-quarter 2025 earnings that outperformed analyst expectations. The company recorded earnings per share of $1.39, above the $1.26 forecast, representing a 63% year-over-year increase. Revenue for the quarter was $189.65 million, versus an anticipated $184.83 million.
Investors reacted positively to the upside surprise in quarterly results. The company’s earnings call did not include discussion of recent mergers or acquisitions, and there were no reported analyst upgrades or downgrades in the immediate aftermath of the release. The firm also continues a long-standing dividend track record, having paid dividends for 54 consecutive years, with the current yield at 3.73%.
Overall, Stephens’ note ties the stronger near-term performance to improving margin dynamics and incremental loan growth, while flagging operating expense pressures. The combination of better-than-expected fourth-quarter results, an increased 2026 EPS outlook, and a maintained Overweight rating form the basis for the higher $83 price target.