"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.