Bank estimates trimmed at Nomura

"Mixed economic data, geopolitical volatility, and uncertainty surrounding Fed policy actions have weighed on capital markets revenues, with declines exceeding levels indicated by public proxies," says analyst Steven Chubak, cutting his estimates on the TBTFs ahead of Q1 earnings season.

"We anticipate the greatest cuts at the banks with heavier gearing to capital markets (e.g. GS), though none of the Universals are immune; we expect further downgrades across the group. 2014 consensus reflects a level of optimism not supported by recent company guidance or by trends evident in public proxies."

Goldman - whose price target is also cut by $5 to $163 - FY14 EPS is estimated at $14.62 vs. $14.95 previously. Bank of America (BAC) $0.97 vs. $1.22. Citigroup (C) $4.60 vs. $4.96. JPMorgan (JPM) $5.29 vs. $5.35. Morgan Stanley (MS) $2.23 to $2.29.

Chubak, however, continues to rate BofA and Citi as Buys, and the others Neutral.


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Comments (6)
    , contributor
    Comments (5167) | Send Message
    And when Nomura clients have loaded their boats the stocks of JPM, BAC, GS, etc. will be upgraded.
    Same old la la.
    2 Apr 2014, 09:29 AM Reply Like
  • Ruffdog
    , contributor
    Comments (3691) | Send Message
    Nomura is a Japanese financial services group and global investment bank. They are downgrading their competition! I wonder if Nomura owns any Japanese dedt?


    I'll stick with BAC & C.
    2 Apr 2014, 09:55 AM Reply Like
  • cbmetcalfe
    , contributor
    Comments (91) | Send Message
    So, for BAC, they cut next year's earnings forecast by over 20% and still rate it a buy? Doesn't even make sense. (C cut by about 7%)
    2 Apr 2014, 10:11 AM Reply Like
  • starcorral
    , contributor
    Comments (1743) | Send Message
    Nomura? When I want advice of this caliber I go to the bus station downtown with a broken microphone and start interviewing people.


    When I read the report on Ford's gloomy future - immediately after waking up and booting - I just shook my head. Yesterday I took my wife for a root canal; the time was whenever Ford was around 16.15. I dropped her off, went to Sprout's and then dropped by Bill Knight Ford in Tulsa. I explained I was there because I had not been in a Ford dealership since college days (Nixon) and wanted to see what I was invested in. I further expalined that most real analysts agree Ford would be fairly valued at $26 but has been languishing in the low 15s until this very day when their own computers indicated it had hit $16.39. I went on to say "don't buy now; it will fall back a good way because so many market "experts" will be using negative comments to drive the price back down; that is how they manipulate the market; if the news drops the price $.25, they could make a small fortune at your expense."


    The rationale is as textbook perfect as it gets. Now - let us see if I'm correct - a quarter. I stared writing this at 8:52A and have yet to flip back to my chart' it is now 9:12 am CDST.
    2 Apr 2014, 10:12 AM Reply Like
  • William Ford
    , contributor
    Comments (90) | Send Message
    So what is new!
    2 Apr 2014, 11:17 AM Reply Like
  • hotmix
    , contributor
    Comments (337) | Send Message
    Not worth any words
    3 Apr 2014, 07:27 AM Reply Like
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