Detusche Bank's Mayo Slightly More Positive on Bank Stocks (C, WB, BAC, WFC, More...)
Get Alerts C Hot Sheet
Price: $58.32 --0%
Rating Summary:
24 Buy, 13 Hold, 2 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 10
Rating Summary:
24 Buy, 13 Hold, 2 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 10
Join SI Premium – FREE
Detusche Bank analyst Mike Mayo is telling clients to reduce the degree of their underweighting on the banking group.
Mayo cited: 1. most big banks reported 2Q08 with no new capital issuances, 2. margins improved more than expected, helped by a steeper yield curve. 3. problems, beyond real estate, have not spread as much as feared.
However, Mayo said issues remains, including: 1. the degree to which the slowdown exposes increased structural risk, 2. possible additional moves by regulators (possible higher deposit insurance) and rating agencies, 3. macro factors (unemployment/inflation/housing/oil) and 4. continued market nervousness. Mayo said the bank group does not typically perform well until problem loans peak, which he said may not happen until mid-2009.
Mayo recently upgraded Citigroup (NYSE: C) from Sell to Hold and reiterated his Buy rating on Wachovia (NYSE: WB) today.
Other bank and financial stocks:
Comerica Incorporated (NYSE: CMA), Merrill Lynch (NYSE: MER), Bank of New York Mellon Corporation (NYSE: BK), Wells Fargo (NYSE: WFC), Morgan Stanley (NYSE: MS), PNC Financial Services Group Inc. (NYSE: PNC), BB&T (NYSE: BBT), Northern Trust Corp. (Nasdaq: NTRS), US Bancorp (NYSE: USB), State Street Corp. (NYSE: STT), National City Corporation (NYSE: NCC), SunTrust Banks Inc. (NYSE: STI), Bank of America Corporation (NYSE: BAC), Fifth Third Bancorp (Nasdaq: FITB), Lehman Brothers Holdings Inc. (NYSE: LEH), Goldman Sachs Group Inc. (NYSE: GS), KeyCorp (NYSE: KEY), JPMorgan Chase (NYSE: JPM).
Mayo cited: 1. most big banks reported 2Q08 with no new capital issuances, 2. margins improved more than expected, helped by a steeper yield curve. 3. problems, beyond real estate, have not spread as much as feared.
However, Mayo said issues remains, including: 1. the degree to which the slowdown exposes increased structural risk, 2. possible additional moves by regulators (possible higher deposit insurance) and rating agencies, 3. macro factors (unemployment/inflation/housing/oil) and 4. continued market nervousness. Mayo said the bank group does not typically perform well until problem loans peak, which he said may not happen until mid-2009.
Mayo recently upgraded Citigroup (NYSE: C) from Sell to Hold and reiterated his Buy rating on Wachovia (NYSE: WB) today.
Other bank and financial stocks:
Comerica Incorporated (NYSE: CMA), Merrill Lynch (NYSE: MER), Bank of New York Mellon Corporation (NYSE: BK), Wells Fargo (NYSE: WFC), Morgan Stanley (NYSE: MS), PNC Financial Services Group Inc. (NYSE: PNC), BB&T (NYSE: BBT), Northern Trust Corp. (Nasdaq: NTRS), US Bancorp (NYSE: USB), State Street Corp. (NYSE: STT), National City Corporation (NYSE: NCC), SunTrust Banks Inc. (NYSE: STI), Bank of America Corporation (NYSE: BAC), Fifth Third Bancorp (Nasdaq: FITB), Lehman Brothers Holdings Inc. (NYSE: LEH), Goldman Sachs Group Inc. (NYSE: GS), KeyCorp (NYSE: KEY), JPMorgan Chase (NYSE: JPM).
You May Also Be Interested In
- JPMorgan (JPM) Dealmakers Lipsky and Lee Leaving the Bank - Reuters
- BofA Securities Downgrades O-I Glass Inc. (OI) to Neutral, 'demand for glass-packaged, alcoholic products could remain sluggish'
- MYT Netherlands (MYTE) PT Raised to $3.75 at Morgan Stanley
Create E-mail Alert Related Categories
Analyst Comments, Insiders' Blog, Trader TalkRelated Entities
JPMorgan, Goldman Sachs, Citi, Morgan Stanley, Lehman Brothers, Wachovia, BB&T Capital Markets, Mike MayoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!