Citigroup (C), Bank of America (BAC) Q1 Estimates Lowered at Jefferies
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Price: $62.50 +2.54%
Rating Summary:
24 Buy, 13 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
Rating Summary:
24 Buy, 13 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
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Shares of Citigroup (NYSE: C) and Bank of America (NYSE: BAC) are modestly higher despite lower estimates at Jefferies, which cited lower trading fees and higher expenses for Citigroup and lower trading and net interest income at Bank of America.
Jefferies analyst Ken Usdin lowered his price target on Hold-rated Citigroup from $60 to $56, while cutting Q1 estimates to $1.14 (from $1.45) versus the Street consensus of $1.24. Usdin said, "Changes largely reflect mgmt.'s recent trading update (down by a "high mid-teens" percentage Y-Y) and outlook for a Q-Q increase in expenses. While shares looks more compelling at 0.86x tangible book value, we remain concerned about EPS revision risks and have a tough time getting to mgmt.'s 10% tangible ROE target for '15 (we stand at 9%). We also note that our '15 ROA forecast of 90bp ($5.60 of EPS) is at the very low-end of mgmt.'s 90bp-110bp target range and could prove tough to hit without either improved revenues or an incremental focus on costs."
The analyst also lowered Q1 estimates on Bank of America (NYSE: BAC) to $0.25 (from $0.28) versus the Street at $0.29, due to lower trading and net interest income (NII). However, the firm maintained a Buy rating and $20 price target on the stock.
For an analyst ratings summary and ratings history on Citi click here. For more ratings news on Citi click here.
Shares of Citi closed at $47.73 yesterday.
Jefferies analyst Ken Usdin lowered his price target on Hold-rated Citigroup from $60 to $56, while cutting Q1 estimates to $1.14 (from $1.45) versus the Street consensus of $1.24. Usdin said, "Changes largely reflect mgmt.'s recent trading update (down by a "high mid-teens" percentage Y-Y) and outlook for a Q-Q increase in expenses. While shares looks more compelling at 0.86x tangible book value, we remain concerned about EPS revision risks and have a tough time getting to mgmt.'s 10% tangible ROE target for '15 (we stand at 9%). We also note that our '15 ROA forecast of 90bp ($5.60 of EPS) is at the very low-end of mgmt.'s 90bp-110bp target range and could prove tough to hit without either improved revenues or an incremental focus on costs."
The analyst also lowered Q1 estimates on Bank of America (NYSE: BAC) to $0.25 (from $0.28) versus the Street at $0.29, due to lower trading and net interest income (NII). However, the firm maintained a Buy rating and $20 price target on the stock.
For an analyst ratings summary and ratings history on Citi click here. For more ratings news on Citi click here.
Shares of Citi closed at $47.73 yesterday.
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