Bankoh stock has hit fair value, analyst says

Bank of Hawaii Corp., whose stock hit a 52-week high of $29.41 Friday, was downgraded today to "market perform" from "buy" by Lehman Brothers analyst Brock Vandervliet.

Vandervliet, who said the bank's valuation was too high compared with the 56 midcap banks that the brokerage covers in its index, lowered his rating nearly a year to the day after he upgraded the stock from "market perform" to "buy" on May 23, 2001. The stock was then trading at $24.75

Bank of Hawaii's shares fell $1, or 3.4 percent, to $28.41 today. The stock is up 9.7 percent for the year.

"I think the stock is fairly valued here," Vandervliet said. "I think a great deal about management and that they're making all the right moves. It's simply a valuation call."

Vandervliet also lowered his earnings per share for the company to $1.70 from $1.80 in 2002 and to $1.95 from $2.05 in 2003. He said he lowered the estimates because the company seems less likely to buy back shares. His 12-month target price for the shares is $30.

"The company, as part of its restructuring, has been actively buying back their stock," Vandervliet said. "We believe management will be less active going forward in the buyback because we think management feels the stock is closer to fairly valued as well."

Survey says gas prices appear to remain steady

CAMARILLO, Calif. >> Gas prices held steady over the past two weeks reflecting sufficient supplies to meet spring driving demand, an industry analyst said yesterday.

The weighted average price per gallon for all grades and taxes Friday was about $1.46, compared with $1.45 two weeks earlier, said Trilby Lundberg of the Lundberg Survey. The survey looks at prices at 8,000 gas stations nationwide.

The per-gallon price for self-serve regular was about $1.43.

"Unless a major supply problem occurs in the refining or distribution system, gasoline prices are not likely to jump anytime soon," Lundberg said.

Unlike last year, when gasoline prices spiked 23 cents during the six weeks between April 6 and May 18, prices are virtually unchanged nationally during the same period this year.