2024-05-30 15:47:24 ET
Summary
- Shares of Bank OZK dropped sharply earlier in the week, as asset quality concerns once again raised their head.
- While a single sell-side downgrade appears to have driven this sell-off, both the stock price fall and the analyst's price target look harsh relative to the expected reduction in earnings.
- Recent results were still strong for Bank OZK, while the shares are too cheap even on lower estimates of medium-term EPS, profitability, and valuation multiples.
Shares of Bank OZK ( OZK ) fell close to 15% yesterday (Wednesday 29th), as credit quality concerns have once again raised their head. This drop means the shares have shed around 6% since I first covered the bank in March, underperforming regional bank peers by ~6ppt in that time....
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Bank OZK: Dogged Again By Asset Quality Concerns