Wells Fargo downgrades BOK Financial stock rating on earnings risk

Wells Fargo downgraded BOK Financial's stock rating to Underweight from Equal Weight and lowered its price target, citing near-term earnings per share risk and stretched valuation. Despite BOK Financial's strong year-to-date performance and low valuation metrics, the downgrade reflects concerns over earnings risk. The stock's current price is below the new target, but analysts remain optimistic about its upside potential.

BOK Financial's Q2 2026 earnings exceeded expectations, driven by record loan growth and strong revenue from fiduciary and asset management services. However, revenue fell short of projections, and mixed fee income results indicate room for improvement. Despite these challenges, analysts remain bullish on BOK Financial, with some raising their price targets following the company's earnings beat.

The company's diverse revenue streams and strong credit metrics are expected to contribute to a stable financial outlook. Wells Fargo will continue to monitor the situation, particularly deposit pricing in Texas, which accounts for a significant portion of BOK Financial's deposits.