Shares in retail banking and insurance giant Bank of Queensland Limited (ASX: BOQ) are up marginally today to $10.64 despite brokers continuing to downgrade the stock.
Morgan Stanley has reduced second-half forecasts on the stock by 5 basis points due to greater front book competition and the expectation that loan losses will increase.
Morgan Stanley has an underweight rating on Bank of Queensland, reducing its price target from $11 to $10.30 saying the bank has a “revenue problem” some investors will be willing to bypass due to a robust dividend offering.
UBS has a sell rating on Bank of Queensland at present with its price target dropping from $12 to $9.80 as a result of a below-expectation half-year result.
Things have picked up in the overall banking sector of late, with big names such as Commonwealth Bank of Australia (ASX: CBA) booking some gains, with shares up slightly to $72.45 at the time of writing.
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Motley Fool contributor Carin Pickworth owns shares of Commonwealth Bank of Australia and National Australia Bank Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.