In addition to starting coverage on the TBTF banks, Nomura has a look at a number of brokerage names.
"We see numerous earnings levers that, in our view, are not fully reflected in consensus, including lower: credit costs, FDIC assessment fees, and servicing costs," says analyst Steven Chubak, launching E*Trade (ETFC) with a Buy and $23 price target.
"We believe Raymond James (RJF) is poised to outperform in 2014 as the firm is more exposed to areas with better growth prospects including Wealth/Asset Management and RJ Bank (80% of combined pre-tax income)," says Chubak, starting with a Buy and $60 price target. "Earnings growth and cost optimization should position RJF to reach its 15% margin target by FY2014; with further margin upside as short rates begin to rise (~20% benefit to cons. 2014E), which is not priced into shares, in our view."
LPL Investment (LPLA) rates a Buy with $59 price target: "Earnings growth should remain robust, reflecting secular tailwinds in Retail Advisory, best-in-class capital return, and continued progress on cost savings initiatives."