Nomura Trims FY14 Estimates on Banks Into Q1 Results (GS) (BAC) (C) (JPM) (MS)

Nomura Securities bank analyst Steven Chubak is lower estimates on a host of banks ahead of Q1 earnings season. The firm also cut its price target on Neutral-rated Goldman Sachs (NYSE: GS) from $168 to $163.

Chubak said, "Mixed economic data, geopolitical volatility, and uncertainty surrounding Fed policy actions have weighed on Capital Markets revenues, with declines exceeding levels indicated by public proxies. We cut our estimates further, lowering revenue estimates for FICC (-15% YoY), Equity trading (-3% YoY), and M&A (+10% YoY), partially offset by upward revisions to ECM (+10% YoY) and DCM (though still -14% YoY). We anticipate the greatest cuts at the banks with heavier gearing to capital markets (e.g. GS), though none of the Universals are immune; we expect further downgrades across the group. 2014 consensus reflects a level of optimism not supported by recent company guidance or by trends evident in public proxies."

FY 2014 Estimate Changes:
Goldman Sachs (Neutral; $163 PT) FY14E EPS from $14.95 to $14.62
Bank of America (NYSE: BAC) (Buy, $19 PT) FY14E EPS from $1.22 to $0.97
Citigroup (NYSE: C) (Buy, $68 PT) FY14E EPS from $4.96 to $4.60
JP Morgan (NYSE: JPM) (Neutral, $65 PT) FY14E EPS from $5.29 to $5.35
Morgan Stanley (NYSE: MS) (Neutral, $35 PT) FY14E EPS from $2.29 to $2.23

For an analyst ratings summary and ratings history on Goldman Sachs click here. For more ratings news on Goldman Sachs click here.

Shares of Goldman Sachs closed at $165.92 yesterday.

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