Morgan Stanley expects slowing earnings growth will be revealed when the bank reports in April. Margins are peaking, although there may be some support from improved loan growth.
Morgan Stanley notes good cost controls and credit quality could surprise positively. The broker suggests investment in digital will take priority over further capital returns.
Underweight maintained. Target is reduced to $11.00 from $11.40. In-Line industry view retained.
Target price is $11.00.Current Price is $11.43. Difference: ($0.43) – (brackets indicate current price is over target). If BOQ meets the Morgan Stanley target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).