The Bank of Queensland Limited (ASX: BOQ) share price continued its poor form to shed 7% in a month.
This comes despite the company not releasing any price-sensitive announcements to the market since its half-year results.
At the time of writing, the regional bank's shares are swapping hands at $6.87, up 0.15%.
Let's take a look at what might have weighed on Bank of Queensland shares lately.
What happened to Bank of Queensland shares?
The Bank of Queensland share price finished lower than a month ago, dragged down by negative investor sentiment.
For context, the S&P/ASX 200 Index (ASX: XJO) also fell 5.32% in the past month.
Currently, the benchmark index is flat for the day at 6,734.1 points, down 0.07%.
The recent broader market weakness is due to market concerns regarding a more aggressive rate hike by the US Federal Reserve.
Consequently, this has put selling pressure on Bank of Queensland shares as well as the other big banks.
Shares in Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB) are down 6.08% and 5.25% for the month, respectively.
If interest rates do lift by 100 basis points at the US central bank meeting later this week, expect a sharp pullback.
The benchmark ASX 200 index hit a two-month low today and could be in sight of its year-to-date low of 6,400 points. It is around 5% off those levels.
Despite the gloomy economic outlook, UBS initiated a "buy" rating on Bank of Queensland shares, and put a price target of $8 apiece.
Based on where the share trades today, this implies an upside of about 16%.
The broker believes that regional bank's shares are undervalued in the current economic climate and present a buying opportunity.
Bank of Queensland share price summary
Over the past 12 months, Bank of Queensland shares have lost almost 30% on the back of inflationary movements and the cost of living.
On the other hand, the S&P/ASX 200 Financials Index (ASX: XFJ) has fallen by 9% over the same time frame.
Bank of Queensland commands a market capitalisation of approximately $4.44 billion.
