Citi Cuts Q1 Estimates on Big Banks; Likes JPMorgan (JPM) Into Earnings (GS) (MS) (BAC)

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Analysts at Citi reduced Q1 earnings estimates on a number of the big banks this morning. On average, the firm cut expected earnings by about 35%.

Citi said it expects total trading and investment banking sales during Q1 to be down about 15% on a year-over-year basis. Core fixed income trading will likely fall in the 20-25% range, while core equities will be down about 10% on average. The firm noted that it sees investment banking showing a glimmer of strength given easy comps in the advisory market.

Citi made the following revisions to quarterly earnings estimates:

Goldman Sachs (NYSE: GS) - from $4.95 to $3.50, vs. the Street consensus of $4.14, maintains Buy and $200 price target
Bank of America (NYSE: BAC) - from 32c to 21c, vs. the consensus of 30c, maintains Buy and $18 price target
JPMorgan (NYSE: JPM) - from $1.45 to $1.33, vs. the consensus of $1.18, maintains Buy and $54 price target
Morgan Stanley (NYSE: MS) - from 73c to 20c, vs. the consensus of 68c, maintains Hold and $29 price target
Lazard (NYSE: LAZ) - from 56c to 40c, vs. the consensus of 53c, maintains Hold and cuts price target from $50 to $47

The firm said it likes shares of JPMorgan heading into earnings, expected out on Monday, April 11, and that this is the best bank stock to own today.

The SPDR KBW Bank ETF (NYSE: KBE) is up 0.67% this morning.

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