Citi reduced ratings to "Hold" from "Buy" on Bank of America, JPMorgan Chase & Co., Wachovia Corp., Wells Fargo & Co., PNC Financial Services Group Inc. and First Horizon National Corp. Charlotte, N.C.-based Bank of America, the nation's largest financial institution by market capitalization, saw its stock price target reduced to $42 from $58, versus a close Friday at $42.16. The analysts said BofA continues to be "one of the premiere banking franchises," but they expect significant declines in earnings per share in 2008 "largely due to our view that capital markets and credit losses will be worse than expected, and while the stock is cheap we see little upside potential."
Charlotte, N.C.-based Bank of America, the nation's largest financial institution by market capitalization, saw its stock price target reduced to $42 from $58, versus a close Friday at $42.16. The analysts said BofA continues to be "one of the premiere banking franchises," but they expect significant declines in earnings per share in 2008 "largely due to our view that capital markets and credit losses will be worse than expected, and while the stock is cheap we see little upside potential."
Notice they didn't say the bank was in trouble, just that its earnings would decline. For the Wall Street types it's not sufficient to be profitable, the firm has to see profits increasing. This mind set is fine for stock market speculators, but they are treating a weak stock market as being equivalent to weak firms.
I'm holding on to my bank stocks, and planning to increase my investment in one of the "real" banks shortly. Policies not Politics ---- Daily Landscape
