** Stephens initiates coverage of regional lender First Hawaiian FHB.O with "equal-weight" rating and $30 PT, an 8.4% upside to stock's last close

** Brokerage says FHB has several positive attributes that are compelling, but it is waiting for bigger net interest margin $(NIM)$ waves

** NIM is a key measure of banking profitability which shows how much a bank is earning in interest on loans against the amount it pays depositors

** Brokerage sees modest NIM headwinds over the next several quarters for FHB given its asset sensitivity

** Asset sensitive banks are those institutions whose assets are expected to reprice faster than their liabilities

** Such banks are negatively affected by a fall in interest rates, with FHB expecting a 3.2% hit to its net interest income from ~100 basis points in rate cuts

** As of last close, FHB shares up 21.1% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com))