Archive for Industry News
Citigroup (NYSE:C), Bank of America (NYSE:BAC) Up Six Times by 2015 Says Dick Bove
Posted by: | CommentsRochdale Securities analyst Dick Bove has been giving bank stocks a lot of love lately, and among the largest banks, he sees Citigroup (NYSE:C) and Bank of America (NYSE:BAC) exploding by six times what they are today by 2015.
In a Tuesday report, Bove said he sees Citigroup increasing in share price of $24.75 by 2015, over six and a half what it is today, and Bank of America charging to $99.37 by 2015. That’s also well over six times what Bank of America is trading at today.
The optimistic projections of Bove are based on a price-to-book ratio of $12.37 for each company. Today, Citigroup has a price-to-book ratio of 0.72, and Bank of America 0.73.
If you think that’s optimistic, when Bove focuses on the bigger regional banks, he ups the ante even more, saying he sees financial institutions like PNC Financial (NYSE:PNC), Capital One Financial (NYSE:COF) and M&T Bank Corp. (NYSE:MTB) being up even more. Unfortunately, Bove didn’t go into detail on his reasoning behind the regionals.
There are a number of caveats to Bove’s analysis, as when examining the banking data, he admits there aren’t any trends that can be identified in the group, being confirmed by metrics like price-to-earnings, price-to-book and price-to-revenue.
The foundation to Bove’s performance assertions are an economy that will continue to improve. With the dark clouds of European sovereign debt and China inflation hanging over the the global economy, it’s hard to see him stick his neck out this far on the stocks, when we are in very real danger of entering into a potentially deeper recession than the one that is still lingering with us.
Bove also cites data from the FDIC which he concludes give a picture of stability in operating revenues over the last four years, which would include the recession. That seems to imply that Bove thinks even if there are hard times ahead, the banks could ride it out. It’s doubtful they could, but evidently Bove either thinks they can, or doesn’t believe it’s going to get that bad.
He doesn’t think Wells Fargo (NYSE:WFC) and JPMorgan (NYSE:JPM) will perform as strongly as the other major banks, but he still sees them doing well, although at about half of what the other banks will do, according to his estimates, which would still be worth three times what they are today.
With no identifiable trends and the economic crisis brewing, this seems far too optimistic of an outlook, and it could only happen if the crisis isn’t as bad as it seems at this time, which would help these stocks even more, as an increased optimism would arise, which could generate a self-fulfilling prophecy.
This article (Citigroup (NYSE:C), Bank of America (NYSE:BAC) Up Six Times by 2015 Says Dick Bove) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
Morgan Stanley (NYSE: MS) To Hold Investment Symposium For Domestic Partners
Posted by: | CommentsMorgan Stanley (NYSE: MS) announced Tuesday that in conjunction with the Gay & Lesbian Alliance Against Defamation (GLAAD), the Williams Institute – UCLA School of Law and The Principal Funds, it will host a private reception and investment symposium on wealth planning for domestic partners on Thursday, May 27, 2010.
The Wall Street bank said the symposium will focus on findings from two studies by the Williams Institute on challenges gay and lesbian individuals and their partners face under current retirement and real estate tax laws.
“We’re pleased to facilitate this discussion with GLAAD and the Williams Institute, said Robert Perry, Managing Director, Los Angeles Metro Regional Director, Morgan Stanley Smith Barney. “This event provides a forum for us to highlight our wealth planning expertise with a targeted focus on the individual needs of the LGBT community.”
Morgan Stanley will have Alan Wolberg, Executive Director, Wealth Advisory Resources, Planning Director – Soundview Region, Morgan Stanley Smith Barney as its feature speaker.
“On behalf of GLAAD, we are pleased to partner again with our long-time friends at Morgan Stanley Smith Barney on this symposium,” said GLAAD President Jarrett Barrios. “Wealth planning is critical to protect ourselves and our families, as well as to inspire and engage future generations in the work that is important to each of us.”
The event will take place on Thursday, May 27, 2010 at 5:30 p.m. at the Luxe Hotel Sunset Boulevard, 11461 Sunset Boulevard Los Angeles, CA 90049.
This article (Morgan Stanley (NYSE: MS) To Hold Investment Symposium For Domestic Partners) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
Shares Of Citigroup (NYSE: C) Rise On Goldman Sachs (NYSE: GS) Upgrade
Posted by: | CommentsShares of Citigroup (NYSE: C) are trading more than 4 percent higher on Monday despite the financial sector being down roughly 1 percent. The stock found strength following an upgrade by Goldman Sachs (NYSE: GS) to buy from neutral.
Goldman also upped its price target on the bank to $4.50 a share. The stock is trading a little above the $4 mark midway through Monday’s session.
The Wall Street bank said Citigroup, along with other national banks, should continue to benefit from active capital markets and improving consumer credit.
Big banks booked large profits in the first quarter from their trading activities, and with volatility kicking up in the markets recently that trend is likely to continue.
However, Goldman did cut its rating on Wells Fargo (NYSE: WFC) to neutral from buy.
This article (Shares Of Citigroup (NYSE: C) Rise On Goldman Sachs (NYSE: GS) Upgrade) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.