It hasn't been a great year for the Bank of Queensland Ltd (ASX: BOQ) share price.
Since the start of 2022, the regional bank has seen its shares fall over 17% to $6.87.
In light of this, investors may be wondering if the Bank of Queensland share price is now trading at an attractive level to start an investment.
Is the Bank of Queensland share price good value?
According to a recent note out of Goldman Sachs, it doesn't believe investors should be picking up shares just yet.
Though, it is worth noting that the broker does see material upside potential for its shares.
Goldman currently has a neutral rating and $8.16 price target on the bank's shares, which implies potential upside of 19% for investors over the next 12 months.
Why is it not a buy?
The broker highlights two key points for why it isn't as positive on the regional bank as it once was. These include its slowing momentum and its lack of exposure to rising rates. It explained:
1. BOQ's volume momentum has slowed recently and while still tracking above system at 1.4x system average (on a 3 month annualised basis), this is somewhat below BEN at 2.2x.
2. BOQ's margin is not as exposed to higher cash rates and it therefore captures less upside from higher rates. We also note that its recent deposit pricing has shown greater levels of sensitivity to higher cash rates than either the majors or BEN.
Instead of Bank of Queensland, the broker thinks investors should be buying Westpac Banking Corp (ASX: WBC) shares.
Goldman has Australia's oldest bank on its conviction buy list with a price target of $26.55. This implies potential upside of 25% for investors from current levels.
