Thu, Dec. 1, 7:29 AM
- All four are valuation calls after major runs higher since the election, and analyst Jack Micenko says optimism about higher rates, boosted economic growth, reduced regulation taxes is priced in.
- Regions Financial (NYSE:RF) is up 24% since Nov. 9, Zions (NASDAQ:ZION) 23%, Wells Fargo (NYSE:WFC) 16%, and U.S. Bancorp (NYSE:USB) 10%.
- Source: TheFly
Wed, Nov. 16, 7:17 AM
- The SPDR KBW Bank ETF (NYSEARCA:KBE) is now up 18.9% YTD - this after a miserable start to 2016. Since February 11, the fund is higher by 46%. Since July 1, it's up 32%, and since the election 15%.
- With bullish price targets being hit and surpassed across the sector, the downgrades are pouring in.
- Among them, U.S. Bancorp sees its 2nd downgrade in two days. Others: Fifth Third (NASDAQ:FITB), First Republic (NYSE:FRC), Citizens Financial (NYSE:CFG), Capital One (NYSE:COF), Zions Bancorp (NASDAQ:ZION), KeyCorp (NYSE:KEY), Webster Financial (NYSE:WBS), NBT Bancorp (NASDAQ:NBTB), Sterling Bancorp (NYSE:STL), First Connecticut (NASDAQ:FBNK), Regions Financial (NYSE:RF)
Fri, Oct. 28, 2:02 PM
Mon, Oct. 24, 4:51 PM
Sun, Oct. 23, 5:35 PM
Tue, Oct. 11, 9:45 AM| Tue, Oct. 11, 9:45 AM
Mon, Oct. 10, 12:36 PM
- Hovde group initiates research on Sterling Bancorp STL +0.8% with an outperform rating and set a PT of $20.00.
- FBR & Co. initiates New York Mortgage Trust NYMT +0.2% with a market perform rating and set a PT of $6.25.
- Oppenheimer Holdings downgrades Ameriprise Financial Services (NYSE:AMP) +0.6% to underweight.
- Nomura downgrades Fifth Third Bancorp FITB -0.02% to Reduce from Neutral and PNC Financial Services Group (NYSE:PNC) +0.3% to Neutral from Buy.
- Piper Jaffray downgrades Zions Bancorp (NASDAQ:ZION) +0.6% to Neutral from overweight.
Thu, Oct. 6, 10:24 AM
- Alongside an earlier-reported downgrade of Regions Financial (to Outperform from Strong Buy), Raymond James also downgrades Zions Bancorp (ZION -0.6%) to Market Perform from Outperform.
- As with Regions, the Zions call has been a good one, with the stock higher by 16% this year, far outpacing the regional bank index.
- PNC Financial (PNC -0.1%) is upgraded to Market Perform from Underperform - another good call as PNC's 4% decline this year has lagged peers.
- Turning to some smaller players, United Community Banks (UCBI +1.5%) is boosted to Strong Buy from Outperform. Park Sterling Bank (PSTB -0.6%) is cut to Market Perform from Outperform following its nice run higher. Bancorp South (BXS -0.9%) is cut to Underperform thanks to earnings uncertainty around the closing of two pending acquisitions.
Wed, Sep. 28, 9:32 AM
- "Large banks are going to be forced to take on more capital," says Dick Bove. "It will make the cost of funding more, not less, expensive. It will reduce the appeal for investors to put money at risk in the banking system."
- Bove is commenting on a weekend announcement from Fed Governor Daniel Tarullo promising future stress tests will be geared to demanding even higher cash buffers for banks. Set to take effect next year, the new rule could raise capital requirements for the largest banks by 3 or 4 percentage points, writes Jeff Cox at CNBC.
- Interested parties: BAC, C, WFC, JPM, GS, MS
- There's good news though, as those lenders with less than $250B in assets won't be subject to the same standards. FBR's Edward Mills calls it a "significant positive" for regionals, which now have more certainly on the process, reduced regulatory expenses, and thus the ability to return more capital to owners.
- Interested parties: RF, ZION, CMA, KEY, FITB, STI, NYCB, HBAN, PNC, BBT, MTB
- ETFs: KRE, KBE, IAT, KBWB, QABA, KBWR, KRU, PSCF, KRS, WDRW, DPST
Tue, Sep. 20, 2:12 PM
- Noting progress on the expense control front, analyst Jill Shea boosts the price target on Outperform-rated Zions Bancorp (ZION +0.3%) to $36 from $32 (current price is $30.02). "Given that rates have not provided earnings support, we think greater urgency has been placed on controlling costs."
- Shea sees an improvement to 8.3% ROTCE by the end of next year, and 9.1% by year-end 2018 - this without the benefit of higher interest rates.
Wed, Sep. 14, 11:03 AM
- It's no surprise that yield-starved financials are expected to be a big beneficiary of higher base rates, but the team at Goldman has six that stand to gain the most.
- Bank of America (NYSE:BAC), BNY Mellon (NYSE:BK), Citizens Financial (NYSE:CFG), Regions Financial (NYSE:RF), Schwab (NYSE:SCHW), and Zions Bancorp (NASDAQ:ZION) make the cut.
- Goldman sees an average 46% upside to normalized earnings for the group if rates go back to 3% (a long way off for even the most hawkish).
- Used to low and slow as far as rate hikes go, investors may be overlooking the potential for even one Fed move this year to be a positive catalyst. The team suggests taking a look at 6-month and 12-month calls on their recommendation list.
Tue, Jul. 26, 4:41 PM
Mon, Jul. 25, 5:35 PM
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Fri, Jul. 22, 7:13 AM
Thu, Jul. 7, 3:09 PM
- FBR's Paul Miller figures Zions (ZION +1.3%) could improve its ROTCE to about 9% from the current 5.3% over the next 12-18 months, thanks to cost-cutting efforts, the sale of CDOs, and the redeployment of capital.
- With the stock currently around book value, he sees little downside should the bank not be able to achieve those targets. He upgrades to Outperform, with price target raised to $36 from $30.
- Management is expected to disclose cost-cutting plans in the next two-three months, and Miller sees an efficiency ratio target of 65%, with expenses declining from about a $400M quarterly run rate to $385M.
- The CDO portfolio sale should free up about $500M for capital moves - be they buybacks, or purchases of securities and loans.
Wed, Jun. 29, 9:41 AM
- The details aren't available, but one can be pretty sure a common theme through all of the downgrades is a "lower for longer" interest rate scenario, and for any Texas or energy-exposed banks a possible topping in oil prices.
- Comerica (CMA -0.1%) is cut to Underperform from Neutral, Franklin Financial (FSB) to Neutral from Buy, Lincoln National (LNC -0.8%) to Neutral, Principal Financial (PFG +0.5%) to Neutral, Prudential (PRU -0.4%) to Underperform, Regions Financial (RF +0.5%) to Neutral, Synovus (SNV +0.4%) to Neutral, Unum Group (UNM -1.2%) to Underperform, and Zions (ZION -0.3%) to Underperform.
- Previously: Texas Capital downgraded at BAML (June 29)