HAFC - Hanmi Financial: High Dividend Yield Is Safe From A Negative Earnings Outlook

2024-04-27 13:13:41 ET

Summary

• I think loan growth can bounce back from the first quarter’s poor performance.
• I’ve reduced the net interest margin estimate following the first quarter’s disappointing performance. Yields are already showing signs of pressure.
• I’ve reduced my earnings estimate to $2.18 per share for 2024 as I’ve reduced both my loan growth and margin estimates.
• HAFC is offering an attractive dividend yield of 6.3%. Despite the earnings outlook, I’m not expecting any dividend cut.
• The December 2024 target price suggests a high upside from the current market price. In my opinion, the market seems to have overreacted to the earnings outlook.

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