Morgan Stanley analysts anticipate a less robust FY23E for Bank of Queensland (ASX:BOQ), a local Australian lender.

Citing one-off charges in the year, the firm estimates an ‘underweight’ stock rating and cuts the target price down to A$5.5 from A$5.6.

The published metrics show no change in the outlook for FY24E and FY25E earnings per share.

Despite the observations, the brokerage anticipates a 19.5% half-on-half decline in cash profit and a 5% fall in revenue.

The brokerage notices a transformation execution risk, restrained dividend growth, and a low return profile with modest capital generation for the Bank of Queensland.

It adds that the company remains in an EPS downgrade cycle due to weak volume growth and margin pressures.

Since the start of the year, the shares have dropped by 18.6% as of the last closing.

Bank of Queensland (ASX:BOQ) is a local lender operating predominantly in Australia.