The Bank of Queensland Limited (ASX: BOQ) share price could be great value.
That's the view of the team at Morgans, which sees material upside for its shares over the next 12 months.
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What did the broker say about the Bank of Queensland share price?
According to a note, Morgans has retained its add rating and $11.00 price target on the regional bank's shares.
Based on the current Bank of Queensland share price of $8.01, this implies potential upside of 37% for investors.
And that's before dividends. Morgans is expecting a fully franked dividend of 48 cents per share in FY 2022. This represents a generous 6% yield, which brings the total potential return on offer with its shares to 43% over the next 12 months.
Why is Morgans bullish?
Morgans believes the Bank of Queensland share price offers significant value for money right now. Particularly given how it is "trumping peers on growth momentum" and realising cost synergies from the acquisition of ME Bank at a quicker than expected rate.
The broker commented: "We see exceptional value in Bank of Queensland's stock. The Company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don't expect its NIM to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated."
"Over the next 12 months, we expect good operational momentum relative to peers to be supportive of the share price. Beyond the next 12 months, we expect cost efficiency improvements in particular to be supportive of the share price," it added.
All in all, Morgans appears to see the Bank of Queensland share price as a top option for investors looking for exposure to the banking sector right now.
