Image source: © 2025 Krish Capital Pty. Ltd.

Highlights
  • Two brokers have rated BOQ at “Underperform” with price targets below current levels.

  • The average analyst target price stands at AUD 6.14, representing potential downside from the current share price of AUD 7.12.

  • BOQ has entered into a strategic partnership with Capgemini to drive digital transformation, business process simplification, and artificial intelligence adoption.

Bank of Queensland Limited (ASX:BOQ) has received “Underperform” ratings from two covering brokers, accompanied by price targets that indicate downside risk from current levels. The ratings come ahead of the bank’s scheduled FY25 results release on 15 October 2025.

Analyst Ratings

According to recent analyst updates, BOQ currently carries two “Underperform” ratings. The brokers’ target prices of AUD 6.00 and AUD 6.28 suggest a downside of 16.78% and 12.90%, respectively, compared to BOQ’s latest trading price of AUD 7.12 on 24 September 2025, down 1.25% or AUD 0.09 on the day of trading.

Strategic Updates

BOQ has announced two key initiatives as part of its transformation program.

  • Capital Partnership: The bank is exploring a whole-of-loan sale of up to AUD 3.8 billion from its equipment finance portfolio. The proposed transaction is designed to enhance capital flexibility and improve Return on Equity (ROE) by moving to a capital-light model.

  • Technology Partnership: BOQ has entered into a strategic partnership with Capgemini to drive digital transformation, business process simplification, and artificial intelligence adoption. The agreement is expected to generate annualised cost savings of at least AUD 30 million from FY27.

FY25 and FY26 Outlook

For the year ending 31 August 2025, BOQ expects to report cash earnings after tax between AUD 375 million and AUD 385 million, an increase of 9% to 12% compared with FY24. Cash ROE is projected to rise by 50–70 basis points.

The bank has also highlighted that its FY26 targets for ROE and cost-to-income are no longer being provided due to an uncertain operating environment. However, management maintains that strategic initiatives and portfolio mix changes will support long-term improvement in profitability.