- Bank of America's (BAC -0.6%) operating earnings could hit $1.72 per share in 2015 from $1.01 this year, says analyst Murali Gopal, initiating the stock with a Buy (initially reported yesterday). Cost savings, reserve releases, and a strong capital markets business leave the bank "uniquely placed" for sustained outperformance.
- Also started at Buy is Citigroup (C -0.6%) as rising home prices could boost Citi Holdings - the unit into which the bank's legacy assets have been placed. Better earnings should also allow the recapture of Citi's $45B deferred tax asset. He sees 2015 adjusted EPS of $6.31 vs. $4.93 this year.
- JPMorgan (JPM +0.7%) is started at Hold because of the regulatory target on its back, with 2015 EPS expected to rise to just $6.25 in 2015 from $5.88 this year.
- Wells Fargo (WFC -0.6%) also rates just a hold because of the bank's heavy exposure to the slowing mortgage market.
More details on SocGen's initiation of coverage on big banks
Sep 20 2013, 10:59 ET