First half results were weaker than Citi expected and the broker reinstates coverage with a Neutral rating and $11 target, reduced from $13.
The stock has fallen around -17% over the year to date and the broker considers the first half results justified this underperformance.
The broker lowers the earnings trajectory to reflect the challenges from lower revenue and higher growth in costs.
Target price is $11.00.Current Price is $10.35. Difference: $0.65 – (brackets indicate current price is over target). If BOQ meets the Citi target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).