BOQ – Morgan Stanley rates Equal-weight

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Morgan Stanley expects the bank will confirm its strong capital by neutralising its distribution reinvestment plan and credit quality could also positively surprise at the results.

The broker expects the bank to deliver around 7% earnings growth in the second half and recover margin. The key to this is the re-pricing that has occurred on both sides of the balance sheet.

Target rises to $12.00 from $11.70. Equal-weight rating and In-Line industry view retained.

Sector: Banks.

Target price is $12.00.Current Price is $12.90. Difference: ($0.90) – (brackets indicate current price is over target). If BOQ meets the Morgan Stanley target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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