The future for Bank of Queensland (BOQ)

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Question asked 06/05/2023

The future for Bank of Queensland (BOQ)

Hi There's been occasional speculation about potential corporate action around BOQ. Do you think this is possible and what form do you think it might take - a merger or a takeover. And who would be the possible third party - one of the big four or someone else? I've noticed that quite often a company is rated in the "Broker Moves" section of your afternoon report by several different brokers on the same day (eg Ramsay Health Care, Amcor and Flight Centre in Thursday's report). Is this just coincidence or do brokers adjust their ratings for particular companies on a particular day each month/quarter? Cheers, Carl

Answer

Hi Carl,

There has been rumours of mergers between BEN and BOQ for many years, it was actually thought that BOQ was about to buy Suncorp’s banking unit before ANZ jumped them. BOQ has a market cap of $3.8bn (CBA has a market cap of $161bn as a reference) so its subscale. They need to get bigger, a fact ANZ is trying to address currently via SUN. BEN has a market cap of $4.7bn, so maybe BEN takes over BOQ, however I doubt one of the majors would buy BOQ.

Generally analysts change views when the company has released updated numbers or guidance i.e. they have a reason to change. That was the case with all of the stocks you mentioned above following trading updates. There is no particular day where analysts need to publish new recommendations / change their numbers.

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Bank of Queensland Ltd (BOQ)

LAST UPDATED 05/05/2023 11:22

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