Seeking Alpha

Big bank estimates taken down amid continuing trading slowdown

  • Atlantic Equities' Richard Staite cuts his Q1 EPS estimate for Citigroup (C +1.9%) to $1.14 from $1.40 and his full year estimate to $4.59 from $4.96, while expressing doubt about the bank's ability to hit its 2015 ROE target of 15%. He continues to have a Hold rating on the name with $55 price target
  • The move comes after CFO John Gerspach - speaking at an institutional investor conference on Monday  - said markets revenues this quarter were off by a high mid-teens percentage, investment banking revenue was tracking lower, and expenses headed higher.
  • Credit Suisse's Moshe Orenbuch cut his Q1 forecast to $1.21 from $1.41 and FY14 to $5 from $5.25. He still rates the stock an Outperform with $65 price target.
  • JPMorgan (JPM +0.9%) - at its investor day last week - was the first of the big banks to signal the greater-than-expected trading revenue slowdown, and KBW's Chris Mutascio lowered his Q1 EPS estimate to $1.38 from $1.43 and FY14 to $5.90 from $5.95. He's got an Outperform and $63 price target on the shares.
  • Bank of America (BAC +1.8%) swims in the same waters, and Orenbuch lowered his Q1 numbers to $0.19 from $0.24 and FY14 to $1.30 from $1.35.
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Comments (1)
  • TBV
    , contributor
    Comments (124) | Send Message
    lol...Moshe Orenbuch - One of the worst analysts on the street..Mike Mayo type. They all missed BAC's run up in 2012 (+109%), 2013 (+34%) and now about to miss 2014. Very stubborn and stupid analysts... make you lose money so fast that you dont even realize it. By the way, who is Atlantic Equities' Richard Staite? Another Wolfie ?
    5 Mar 2014, 11:07 AM Reply Like
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