The Bank of Queensland Limited (ASX: BOQ) share price has been a poor performer in recent weeks.
For example, since peaking at a 52-week high of $9.84 two months ago, the regional bank's shares are down almost 20% to $7.93.
This means Bank of Queensland's shares are up just 5% in 2021.
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Where next for the Bank of Queensland share price?
The good news for shareholders is that a number of brokers believe the Bank of Queensland share price could be heading a lot higher from here.
One of those brokers is Citi. According to a recent note, the broker has responded to its recent trading update by retaining its buy rating but trimming its price target slightly to $10.00.
Based on the current Bank of Queensland share price, this implies potential upside of 26% for investors over the next 12 months.
And with Citi forecasting a fully franked dividend of 49 cents per share in FY 2022, which represents a 6.2% yield, the total potential return on offer stretches to over 32%.
What did the broker say?
Citi has adjusted its earnings and valuation to reflect softer margins. However, despite this, the broker still sees enough value in the Bank of Queensland share price to maintain its buy rating.
The broker commented: "We lower our FY22-24E cash earnings by ~0.5-2%. Lower earnings revisions largely reflect recent moves in the yield curve, which have eroded margins on fixed rate loans, in addition to the adverse mix impact. We have lowered our NIM forecasts by ~3-6bps across our forecast period to reflect this headwind, although the NII revisions are mitigated by higher forecast liquid balances. We have lowered our TP to $10 given the earnings revisions, but retain our Buy recommendation."
