Deutsche Bank on U.S. Large Cap Banks: Downgrades STI & FHN; Top Picks JPM & C
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Price: $185.80 +2.51%
Rating Summary:
22 Buy, 19 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
22 Buy, 19 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Deutsche Bank on U.S. Large Cap Banks
"In our 12 Keys to 2012 (dated 1/4), we noted that upside in bank stocks seemed more likely to come from Money Centers (vs. Regionals going forward) given the potential for a pickup in capital markets, lower relative valuations and increasing pressures at Regionals. With 4Q earnings behind us, this still seems like the right call. While 4Q revenues at Regionals were generally in-line/slightly better than expected, the revenue outlook for 1Q (and likely 2Q12) may be more muted (NIM pressure, lower seasonality in 1Q/2Q) and expenses may be higher than expected for longer (continued high credit related costs). And while we're only a few weeks into the quarter, capital markets revenues seem poised to bounce nicely q/q. Our top picks remain JPMorgan (NYSE: JPM) and Citi (NYSE: C) among Money Centers."
Other BUY rated stocks: BB&T (NYSE: BBT), Key Corp (NYSE: KEY), Regions Financial (NYSE: RF), TCF (NYSE: TCB), and Wells Fargo (NYSE: WFC)
However, Deutsche downgrades SunTrust (NYSE: STI) and First Horizon National (NYSE: FHN) from BUY to HOLD this morning. Both stocks are down between 4-5% going into the close.
"In our 12 Keys to 2012 (dated 1/4), we noted that upside in bank stocks seemed more likely to come from Money Centers (vs. Regionals going forward) given the potential for a pickup in capital markets, lower relative valuations and increasing pressures at Regionals. With 4Q earnings behind us, this still seems like the right call. While 4Q revenues at Regionals were generally in-line/slightly better than expected, the revenue outlook for 1Q (and likely 2Q12) may be more muted (NIM pressure, lower seasonality in 1Q/2Q) and expenses may be higher than expected for longer (continued high credit related costs). And while we're only a few weeks into the quarter, capital markets revenues seem poised to bounce nicely q/q. Our top picks remain JPMorgan (NYSE: JPM) and Citi (NYSE: C) among Money Centers."
Other BUY rated stocks: BB&T (NYSE: BBT), Key Corp (NYSE: KEY), Regions Financial (NYSE: RF), TCF (NYSE: TCB), and Wells Fargo (NYSE: WFC)
However, Deutsche downgrades SunTrust (NYSE: STI) and First Horizon National (NYSE: FHN) from BUY to HOLD this morning. Both stocks are down between 4-5% going into the close.
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