Shares in Australian-based retail banking player Bank of Queensland Limited (ASX: BOQ) were up slightly to $11.63 at the time of writing, pretty much in line with its $11.76 share price at this time last year.
A note out of the Morgans equities desk has upgraded Bank of Queensland from hold to add with Morgans expecting its strong capital position and surplus franking credits will result in special dividends.
The Morgans broker has reduced Bank of Queensland cash earnings forecasts by -2% for FY18 and -4% for FY19 also lowering net interest margin forecasts, with a share price target of $12.
The broker suggests a discounted dividend reinvestment plan may operate between FY18 and FY19 and the bank's CET1 ratio target of 9.25% will prove to be too conservative with capital management initiatives in the pipeline.
Bank of Queensland will release half-year results on April 17.
Big banking brothers Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group (ASX: ANZ) also started the week up, but National Australia Bank Ltd (ASX: NAB) was down 0.2% to $29.43 at the time of writing.
