Bank of Hawaii stock is slipping, but analysts are not panicking. In fact, many are calling it a buy. On October 16, 2025, the stock closed at $59.82 after falling 4.61% in a single day. That is a rough look, no doubt, but not the full story.
BOH is down over 16% since the start of the year. But long-term holders who stuck around through the bumps still came out ahead. Including dividends, the total shareholder return is up 5.7% over the past year. That kind of return keeps smart money paying attention.
Analysts See a Bargain in the Making
Most analysts think the stock is undervalued. A one-year price target of $70.33 from MarketWatch suggests a strong bounce back. Others go even further. MarketBeat places the average target closer to $75. That is not small change. It would mean a gain of more than 25% from today’s price.
BOH / As of the close on October 16, 2025, BOH's stock price was $59.82, reflecting a one-day drop of 4.61%. The stock has declined in 6 of the last 10 days, and its current price sits 16.03% lower than at the start of the year
Simply Wall St lands in the same ballpark, tagging fair value at $70.50. That puts the current price about 8% below where it should be. Their model banks on the idea that earnings and revenue will grow, thanks to the bank’s shift into digital. Efficiency goes up, costs go down. That is the bet.
Different Valuation Methods Tell Different Stories
Valuing a bank isn’t a one-size-fits-all job. The way you slice the data can change the picture. Let’s look at how the price stacks up when we check the P/E ratio, or price-to-earnings.
Right now, BOH trades between 15.7x and 17.1x earnings. That’s higher than the average U.S. bank at 11.7x. Even compared to its closest peers, who trade at around 14.0x, BOH looks pricey. Simply Wall St pegs a fair P/E for the bank at 13.6x, which means it may actually be trading above its true value by that measure.
DCF Model Suggests Deeper Value
So, is it overvalued or not? Depends on your lens. One tool that tells a different story is the discounted cash flow model. Instead of comparing to other banks, this model looks at what BOH is expected to earn in the future and then rolls that back to today’s dollars. According to this math, the stock could be undervalued by up to 37%.
BOH / BOH might be trading low now, but if future cash flows grow like predicted, today’s price could be a steal.
Of course, you can’t ignore the risks. The bank is deeply tied to Hawaii’s local economy, especially its real estate market. If things cool off in that sector, the ripple effect could be serious. A concentrated market like that doesn’t leave much room to pivot.
And the short-term technical signals aren’t exactly glowing. BOH has been on a downward trend over the past couple of weeks. It’s dipped six times in the last ten trading days. The momentum just isn’t there right now, and traders are noticing.
Still, that dip might be the very reason some pros are calling this a buy. When a fundamentally solid stock gets beaten down without a major change in outlook, the long-term investors start circling. They know the market often overreacts in the short run.
