- First Hawaiian (NASDAQ:FHB) stock rises 4.2% after UBS analyst Brock Vandervleit upgrade the stock to Neutral from Sell after the bank took no provision for credit loss in Q1 and announced a $75M stock buyback program in February, signaling gradual improvement ahead.
- The Sell rating had been based on Vandervliet's expectation that FHB would have higher credit costs as lack of tourism hit the economy during the pandemic.
- However, tourist arrival rates are recovering "powerfully" YTD and credit dislocation appears unlikely to materialize, the analyst said.
- Lifts price target to $28 from $22.
- Revises EPS estimate for 2021 to $1.78 from $1.60 and for 2022 to $1.72 from $1.62.
- Vandervliet's Neutral rating contrasts with the Bearish Quant rating and aligns with the average Wall Street analyst rating (2 Very Bullish, 2 Neutral, 2 Bearish, 2 Very Bearish).