Goldman Sachs Sees 21% Upside for Large-Cap Banks
Tweet Send to a Friend
Get Alerts XLF Hot Sheet
Price: $19.60 -1.36%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Trade XLF Now!
Analysts at Goldman Sachs see an average upside of 21 percent for large-cap banks and credit card company stocks. However, near term research paints a difficult short term environment for stocks in the financial sector and the ETF, Financial Select Sector SPDR (NYSE: XLF).
In a research note today, Goldman analysts lowered second quarter earnings estimates on banks to reflect what they predict will be a 30 percent decline in quarter over quarter revenue. The decline in revenue is being driven by lower expectations for net interest margin, which is declining as the yield on 10-year treasures make record lows. Despite these headwinds, they see upside in this sector based on 2013 earnings estimates.
“We retain our Attractive coverage view on the credit card and large-cap bank stocks with an average upside of 21% and our Neutral coverage view on the regional banks with a more balanced 9% upside,” stated analysts at the bank, led by Richard Ramsden.
Ramsden has a Buy rating on JPMorgan (NYSE: JPM) and American Express. (NYSE: AXP. Wells Fargo (NYSE: WFC), BB&T Corporation (NYSE: BBT) and Fifth Third Bancorp (NASDAQ: FITB) are the best positioned to do well in the current environment of low yields, they said.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
In a research note today, Goldman analysts lowered second quarter earnings estimates on banks to reflect what they predict will be a 30 percent decline in quarter over quarter revenue. The decline in revenue is being driven by lower expectations for net interest margin, which is declining as the yield on 10-year treasures make record lows. Despite these headwinds, they see upside in this sector based on 2013 earnings estimates.
“We retain our Attractive coverage view on the credit card and large-cap bank stocks with an average upside of 21% and our Neutral coverage view on the regional banks with a more balanced 9% upside,” stated analysts at the bank, led by Richard Ramsden.
Ramsden has a Buy rating on JPMorgan (NYSE: JPM) and American Express. (NYSE: AXP. Wells Fargo (NYSE: WFC), BB&T Corporation (NYSE: BBT) and Fifth Third Bancorp (NASDAQ: FITB) are the best positioned to do well in the current environment of low yields, they said.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- UPDATE: Keryx Biopharma (KERX) Patents Strong; JPMorgan Starts at Overweight
- UPDATE: Macquarie Downgrades Sprint (S) to Neutral
- Morgan Stanley Maintains Bullish Stance on Walter Energy (WLT)
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS ChangeRelated Entities
JPMorgan, Goldman Sachs, BB&T Capital Markets, Earnings, Wells Fargo
Login with Facebook
Sign 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!
