2024-05-06 04:22:56 ET
Summary
- The upcoming acquisition will provide much-needed respite to the loan portfolio, which has been declining for a year and a half.
- The management’s strategy to reduce costly deposits will lift the margin. On the other hand, the acquisition can pressurize the margin.
- I’m expecting earnings to dip this year before taking off next year.
- HOPE is offering an attractive dividend yield of 5.2%.
- My valuation analysis suggests a potential price downside of12% this year. Increasing the time frame till the end of next year leads to a price upside of 6%.
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For further details see:
Hope Bancorp: Dividend Yield Is Attractive, Acquisition Is The Biggest Catalyst