
Hope Bancorp (HOPE) Stock Forecast & Price Target
Hope Bancorp (HOPE) Analyst Ratings
Bulls say
Hope Bancorp's stock outlook is bolstered by an improvement in non-performing loan (NPL) coverage, which rose to 166%, indicating a stronger position in managing credit risk. The merger with TBNK is anticipated to contribute to total loan growth in the high single-digit range, alongside moderate organic loan growth projected for 2025. Furthermore, the bank's earnings per share showed resilience, driven by lower provisions, higher fees, and reduced expenses, suggesting operational efficiency and the potential for sustained growth.
Bears say
Hope Bancorp's stock outlook is negatively impacted by a decrease in net interest income (NII), which fell 2.6% quarter-over-quarter to $102.1 million, primarily due to a contracted net interest margin (NIM) of 2.50% and a $107 million decline in average earning assets. The bank experienced further pressure on NIM from a decline in loan yields, which decreased by 21 basis points quarter-over-quarter, compounded by accrued interest reversals as loans transitioned to nonaccrual status. Additionally, asset quality appears to be deteriorating, highlighted by a reduction in the allowance for credit losses (ACL) ratio and a significant 10.9% decline in period-end deposits, suggesting ongoing challenges in loan demand and profitability.
This aggregate rating is based on analysts' research of Hope Bancorp and is not a guaranteed prediction by Public.com or investment advice.
Hope Bancorp (HOPE) Analyst Forecast & Price Prediction
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