First Hawaiian downgraded to Underweight from Neutral at JPMorgan

JPMorgan analyst Steven Alexopoulos downgraded First Hawaiian to Underweight from Neutral with an unchanged price target of $24. Although the bank’s Q4 results were highlighted by stronger than expected net interest margin expansion and lower expenses, looking ahead JPMorgan sees more headwinds than tailwinds for the company, particularly with the Federal Reserve likely to begin cutting rates in the second half of 2024 and into 2025, the analyst tells investors in a research note. The firm says First Hawaiian’s slightly asset sensitive balance sheet, its NIM should decline in the quarter that a rate cut actually occurs.