Wells Fargo Cuts Estimates on Major US Banks; Warns Q2 Could Shape Up Like Q411 (BAC) (C) (GS) (JPM) (MS)

Analysts at Wells Fargo slashed earnings estimates on US banks Wednesday morning, citing "a deteriorating market environment [which has] depressed trading revenue beyond the seasonal pullback we expected..." The firm warned the second quarter could be shaping up to look a lot like the fourth quarter of last year.

Wells Fargo's quarterly earnings estimates were reduced by about 30 percent on average, while the firm's FY12 and FY13 estimates were lowered by 17 and 10 percent, respectively.

The firm issued the following revisions:

• BofA (NYSE: BAC) - valuation range set at $8-$9
  
  • Q2 from 24 cents to 18 cents
    
  • FY12 from 70 cents to 40 cents
    
  • FY13 from $1.15 to 90 cents
• Citi (NYSE: C) - valuation range lowered from $32-$35 to $30-$33
  
  • Q2 from 94 cents to 81 cents
    
  • FY12 from $3.85 to $3.65
    
  • FY13 from $4.75 to $4.65
• Goldman Sachs (NYSE: GS) - valuation range from $105-$115 to $95-$105
  
  • Q2 from $2.52 to 82 cents
    
  • FY12 from $12.00 to $9.50
    
  • FY13 from $13.25 to $13.00
• JPMorgan (NYSE: JPM) - valuation range lowered from $42-$45 to $40-$42
  
  • Q2 from $1.02 to 98 cents
    
  • FY12 from $4.65 to $4.55
    
  • FY13 from $5.65 to $5.50
• Morgan Stanley (NYSE: MS) - valuation range from $14-$16 to $13-$15
  
  • Q2 from 50 cents to 30 cents
    
  • FY12 from $1.50 to $1.10
    
  • FY13 from $2.50 to $2.00

Wells Fargo said it continues to prefer shares of Citi and JPMorgan, but noted these ideas are only for patient investors.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• Zurn Water Solutions (ZWS) Reiterated at Buy by Stifel on New Product Development Momentum
• Mizuho Reiterates Outperform Rating on Broadcom Limited (AVGO) Into EPS