2019-03-25 08:36:12USB   - $48.50
-1.16 (-2.34%) , WFC - $48.26
-1.6 (-3.21%) … 08:3603/25/19 03/2508:36 03/25/1908:36 | Jefferies downgrades Financials to Underweight on 'shocking' Fed meetingJefferies analyst Steven DeSanctis is "very surprised" by last week's Federal Reserve's decision taking rate hikes completely off table in 2019. The "shocking" Fed meeting means lower rates for longer, which is not good for Financials, DeSanctis tells investors in a research note. A "lack of catalysts and weaker earnings growth" going forward for the entire sector, not just banks, means an Underweight rating on the space makes sense, says the analyst. As such, he downgraded his rating on the Financial sector to Underweight from Market Weight. Publicly traded companies in the space include Bank of America (BAC), Citi (C), Goldman Sachs (GS), JPMorgan (JPM), Morgan Stanley (MS), U.S. Bancorp (USB) and Wells Fargo (WFC). USB - $48.50
-1.16 (-2.34%) WFC - $48.26
-1.6 (-3.21%) MS - $41.63
-1.5 (-3.48%) JPM - $99.78
-3.09 (-3.00%) C - $60.98
-2.92 (-4.57%) GS - $188.57
-6.01 (-3.09%) BAC - $26.97
-1.22 (-4.33%) | |
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- $48.50
-1.16 (-2.34%) - 02/08/19
Odeon's Bove says buy SunTrust, Midwest banks after deal announcement Odeon analyst Dick Bove recommends investors buy shares of SunTrust (STI) following the company's announcement of an agreement to merge with BB&T (BBT), stating that the deal is expected to be accretive by 2021, but likely to be dilutive before this time. He also thinks investors should consider buying a group of Midwestern banks, as the deal puts "significant pressure" on those banks to merge. Banks such as Fifth Third (FITB) and KeyCorp (KEY) "need to join forces," while PNC (PNC) and U.S. Bancorp (USB) "need to buy more scale," Bove stated in his research note. - 01/28/19
- BARD
01/28/19
DOWNGRADEBARD
Neutral U.S. Bancorp downgraded to Neutral from Outperform at Baird - 01/28/19
- BARD
01/28/19
DOWNGRADETarget $55
BARD
U.S. Bancorp downgraded to Neutral following recent rally at Baird As reported previously, Baird analyst David George downgraded U.S. Bancorp to Neutral from Outperform. The analyst cited its recent rally and outperformance of the banking index relative to the market. He said the risk/reward is now more balanced and noted that the stock trades at a slight premium to peers. George maintained his $55 price target on U.S. Bancorp shares. - 01/28/19
Fly Intel: Top five analyst downgrades Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Autohome (ATHM) downgraded to Underweight from Neutral at JPMorgan with analyst Binbin Ding saying he expects the company to see weakened pricing power amid a "challenging" market environment. 2. Vale (VALE) downgraded to Hold from Buy at HSBC and Jefferies, to Neutral from Outperform at Macquarie, and to Market Perform from Outperform at BMO Capital. 3. Amgen (AMGN) downgraded to In Line from Outperform at Evercore ISI with analyst Umer Raffat citing increased biosimilar competition and an imminent court decision on Enbrel patents with Sandoz. 4. Dynagas LNG (DLNG) downgraded to Neutral from Buy at B. Riley FBR with analyst Liam Burke saying the company "significantly" reduced its cash distribution in order to strengthen its balance sheet. 5. SunTrust (STI) and U.S. Bancorp (USB) were downgraded to Neutral from Outperform at Baird. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here. - $48.26
-1.6 (-3.21%) - 01/02/19
- RBCM
01/02/19
UPGRADETarget $48
RBCM
Sector Perform Wells Fargo upgraded to Sector Perform from Underperform at RBC Capital As noted earlier, RBC Capital analyst Gerard Cassidy upgraded Wells Fargo to Sector Perform but lowered his price target to $48 from $50. The analyst notes that his prior downgrade was related to expectations that the Federal Reserve's Cease & Desist Order would "seriously hamper" the bank's ability to operate in an "otherwise healthy banking environment." At current prices however, Cassidy contends that the stock "fully discounts" the bank's regulatory risks, also raising his Q4 earnings estimate by 8c to $1.28. - 01/07/19
- GSCO
01/07/19
DOWNGRADETarget $144
GSCO
Neutral PNC Financial downgraded to Neutral from Buy at Goldman Sachs Goldman Sachs analyst Richard Ramsden downgraded PNC Financial (PNC) to Neutral and lowered his price target for the shares to $144 from $154. Commercial loan growth has fallen 7 percentage points and is likely to track industry growth rates more closely from here, Ramsden tells investors in a research note. Further, he thinks higher deposit betas could "hinder" PNC's net interest income growth and that the current valuation "appears fair on a relative basis." In an environment where the revenue outlook is uncertain, Bank of America (BAC) and Wells Fargo look best positioned, says Ramsden. - 01/08/19
- WOLF
01/08/19
DOWNGRADEWOLF
Peer Perform Wells Fargo downgraded to Peer Perform from Outperform at Wolfe Research - 03/13/19
- JPMS
03/13/19
NO CHANGEJPMS
Underweight Wells Fargo shares to remain pressured by political risks, says JPMorgan While Wells Fargo's CEO Tim Sloan testified to the House Financial Services Committee, the more notable event yesterday was the "surprising" statement from Office of the Comptroller of the Currency rebuking the company, JPMorgan analyst Vivek Juneja tells investors in a research note. This raises the question of whether the OCC will push for any changes in the leadership of Wells, says the analyst. He believes that political and headline risks, as well as scrutiny from regulators, are likely to remain high for Wells Fargo over the next year or so, which will continue to pressure the stock. Juneja keeps an Underweight rating on the shares. - $41.63
-1.5 (-3.48%) - 02/01/19
Societe Generale downgrades Goldman Sachs, Morgan Stanley to Sell As previously reported, Societe Generale analyst Andrew Lim downgraded Goldman Sachs (GS) and Morgan Stanley (MS), both to Sell from Hold, citing his view that the credit cycle deterioration "has already been set in motion" and that it will pay to be defensive for the rest of 2019. Goldman and Morgan are much more exposed to pressure on market-sensitive revenues as purer investment banks, Lim tells investors. He does not have any Buy ratings on big U.S. banks, but continues to favor holding positions in Bank of America (BAC) and JP Morgan (JPM), which Lim views as the most defensive large cap U.S. banks, he tells investors. - 02/01/19
- SOCG
02/01/19
DOWNGRADESOCG
Sell Morgan Stanley downgraded to Sell from Hold at Societe Generale Societe Generale analyst Andrew Lim downgraded Morgan Stanley to Sell from Hold. - 01/25/19
- OPCO
01/25/19
NO CHANGEOPCO
Outperform Bank stocks still 'resoundingly cheap,' says Oppenheimer Oppenheimer analyst Chris Kotowski told investors in a research note that one reason he is so "incessantly bullish" on bank stocks is that investors "still so incessantly hate them." The stocks still remain resoundingly cheap at a 63% relative P/E multiple even though bank balance sheets are arguably the best they have ever been, and the business models decidedly less capital-intensive, he contends. He continues to recommend Outperform-rated Bank of America (BAC), CIT (CIT), Citi (C), Goldman (GS), Jefferies (JEF), Morgan Stanley (MS) and U.S. Bancorp (USB). - 01/18/19
- BMOC
01/18/19
NO CHANGETarget $65
BMOC
Outperform Morgan Stanley price target lowered to $65 from $72 at BMO Capital BMO Capital analyst James Fotheringham lowered his price target on Morgan Stanley to $65 after its "revenue-driven" miss in Q4. The analyst keeps his Outperform rating on the shares however, stating that its 7.2-times two-year forward earnings multiple - a discount to the 10.4-times intrinsic value - implies a "deep value" for the stock price. Fotheringham further cites the release of 2019 CCAR rules, SEC returning of to work, and continued market recovery with higher equity values and lower interest rate volatility as Morgan Stanley's "near term catalysts". - $99.78
-3.09 (-3.00%) - 03/19/19
- KEYB
03/19/19
DOWNGRADEKEYB
Sector Weight Worldpay downgraded to Sector Weight after Fiserv deal at KeyBanc As previously reported, KeyBanc analyst Josh Beck downgraded Worldpay (WP) to Sector Weight from Overweight after the company and FIS (FIS) announced a deal, quickly adding another mega-deal in the wake of Fiserv (FISV)-First Data (FDC) and Global Payments (GPN)-Heartland Payment Systems. The analyst thinks this transaction is likely to expand the M&A discussion around Global Payments, TSYS (TSS), EVO Payments (EVOP), and i3 Verticals (IIIV) and sees paths to accretion should management teams further endorse a scale strategy. Future processing competition could increase among Global Payments, TSYS, First Data, and JPMorgan (JPM), but it remains too early to gauge, he contends. - 03/06/19
JPMorgan files $130.14M mixed securities shelf - 02/28/19
- BMOC
02/28/19
NO CHANGETarget $116
BMOC
Market Perform JPMorgan price target lowered to $116 from $123 at BMO Capital BMO Capital analyst James Fotheringham lowered his price target on JPMorgan to $116 and kept his Market Perform rating, citing the company's Investor Day presentation that lowered expectations for net interest income as well as performance of its corporate & investment bank and wealth management segments. The analyst believes that other large-cap banks, fin-tech companies, and specialty lenders offer greater opportunity, even though his price target still implies a 13% return for JPMorgan stock. - 02/27/19
- MSCO
02/27/19
NO CHANGETarget $124
MSCO
Overweight JPMorgan using scale aggressively to drive share gains, says Morgan Stanley After attending JPMorgan's analyst day meeting, Morgan Stanley analyst Betsy Graseck said the bank is looking to use its scale and "best in class ROE" to price competitively to take share in every business line, despite being #1 in several of them already. While stating that the credit environment remains benign, she is being more conservative than management and lowered her EPS forecast for 2019 by 3% and for 2020 by 4%, citing higher expenses and lower net interest income, partially offset by lower provisions. Graseck keeps an Overweight rating and $124 price target on JPMorgan shares. - $60.98
-2.92 (-4.57%) - 02/22/19
- JEFF
02/22/19
UPGRADETarget $73
JEFF
Buy Citi upgraded to Buy from Hold at Jefferies Jefferies analyst Kenneth Usdin upgraded Citi to Buy and raised his price target for the shares to $73 from $64. - 01/16/19
Fly Intel: Top five analyst downgrades Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Citi (C) downgraded to Hold from Buy at Standpoint Research. 2. Snap (SNAP) downgraded to Sector Perform from Outperform at RBC Capital with analyst Mark Mahaney citing the company's recent "mixed" pre-announcement and, more importantly, its latest disclosure of a "surprise" exit by its CFO Tim Stone who was on the job for less than a year. 3. Nordstrom (JWN) downgraded to Neutral from Conviction Buy at Goldman Sachs, to Neutral from Overweight at Atlantic Equities, and to Market Perform from Outperform at Telsey Advisory. 4. AB InBev (BUD) downgraded to Underperform from Hold at Jefferies with analyst Edward Mundy saying market share pressures, some of which have only recently become visible, will likely persist, and could lead to disappointment against high expectations of an emerging-led recovery. 5. HP Enterprise (HPE) downgraded to Equal Weight from Overweight at Morgan Stanley, while NetApp (NTAP) was downgraded to Underweight from Equal Weight. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here. - 02/22/19
- JEFF
02/22/19
UPGRADETarget $73
JEFF
Buy Jefferies sees positive risk/reward on Citi, upgrades shares to Buy Jefferies analyst Ken Usdin upgraded Citi to Buy from Hold and raised his price target for the shares to $73 from $64. The analyst believes Citi's 2019 will show better revenue growth, stable costs and credit trends, as well as $20B-plus of capital returns. He believes the stock's risk/reward is "skewed to the positive," especially if Citi starts showing tangible progress toward its 13.5% ROTCE goal for 2020. Further, the Mexico and Latin America "story adds to Citi growth/return profile," Usdin tells investors in a research note. - $188.57
-6.01 (-3.09%) - 03/01/19
- SBSH
03/01/19
NO CHANGESBSH
Neutral Goldman Sachs faces 'tough legal setup' in 1MDB case, says Citi Goldman Sachs' alleged role in the ongoing 1MDB scandal has weighed on the stock since November, Citi analyst Keith Horowitz tells investors in a research note. After researching the case and speaking with a subject matter expert, the analyst thinks Goldman "faces a tough legal setup" in the 1MDB case. He expects the company to settle with regulators and estimates a range of penalties from $1.5B to $9.0B, with a base case of $4B-$5B. He sees suspended business activities as unlikely. Despite the 14% underperformance since November, Goldman shares are fairly valued given continued 1MDB overhang, Horowitz tells investors in a research note. He keeps a Neutral rating on the shares. - 02/01/19
- SOCG
02/01/19
DOWNGRADESOCG
Sell Goldman Sachs downgraded to Sell from Hold at Societe Generale Societe Generale analyst Andrew Lim downgraded Goldman Sachs to Sell from Hold. - 02/21/19
Odeon's Dick Bove starts Goldman Sachs with Sell rating Odeon analyst Dick Bove initiated coverage of Goldman Sachs with a Sell rating. Now is not the time to own the stock as indications are growing that Goldman's legal issues "are just beginning related to the events in Malaysia," Bove tells investors in a research note. The analyst adds that the Federal Reserve and U.S. Justice Department are also investigating these events and that fines are expected. Goldman Sachs in late morning trading is down $2.00 to $196.60. - $26.97
-1.22 (-4.33%) - 02/08/19
- DAIW
02/08/19
DOWNGRADEDAIW
Neutral Bank of America downgraded to Market Perform from Outperform at Daiwa - 02/01/19
- UBSW
02/01/19
NO CHANGETarget $33
UBSW
Buy Bank of America rate sensitivity concerns overdone, says UBS UBS analyst Saul Martinez noted banks' underperformance since the dovish comments by the Fed earlier this week. The analyst noted Bank of America shares fell and he believes the perception they are more sensitive to interest rates than peers is misguided. He thinks the company should be able to drive mid-single digit growth and solid positive operating leverage even if the Fed is on hold. Martinez reiterated his Buy rating and $33 price target on Bank of America shares. |