First Hawaiian (FHB) Stock Forecast & Price Target

First Hawaiian Inc demonstrates a positive outlook driven by projected growth in net interest income (NII) and fee growth, with FY26 guidance indicating an increase in NII of 4% to $520 million and anticipated fee revenues of $220 million, reflecting a 2% increase. The company is expected to enhance its earnings per share (EPS), with estimates rising to $2.21, $2.31, and $2.40 for 2025 to 2027, which is supported by stronger loan origination activities noted in recent months. Despite a marginal increase in the efficiency ratio to 57.5% for FY26, a steady performance in fees at $55.6 million above expectations suggests ongoing operational resilience.

First Hawaiian Inc has revised its earnings per share projections downward for 2026 and 2027, now expecting $2.23 and $2.31 respectively, citing reduced net interest income and fees alongside increased non-interest expense and loan loss provisions. The company faces significant risks, including a weaker net interest margin, burdensome growth in non-interest expenses, heightened credit costs, and challenges related to mergers and acquisitions. Additionally, the bank's loan portfolio has seen a notable decline, particularly in commercial and industrial lending, which, combined with a revised fiscal year 2025 net earnings outlook significantly below previous estimates, contributes to a negative financial outlook.