Bank Of America And Wells Fargo May Slow Down On Weak Guidance, Analyst Says
Portfolio Pulse from Adam Eckert
Morgan Stanley analyst Betsy Graseck predicts that Bank of America (BAC) and Wells Fargo (WFC) may not outperform this quarter due to a likely downward guidance on net interest income. This outlook is attributed to a flattening yield curve and slow loan growth. Despite strong year-to-date performances, with BAC up 32.10% and WFC up 45.49%, their asset sensitivity in the financial sector could impact their short-term performance.
July 12, 2021 | 2:28 pm
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NEGATIVE IMPACT
Bank of America may see a short-term performance impact due to expected downward guidance on net interest income, despite a strong year-to-date increase of 32.10%.
Given the analyst's prediction of a downward guidance on net interest income and the asset sensitivity of BAC, there's a high likelihood of a negative short-term impact on its stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEGATIVE IMPACT
Wells Fargo's stock may be negatively impacted in the short term due to anticipated downward guidance on net interest income, despite a significant year-to-date gain of 45.49%.
The expected downward guidance on net interest income, coupled with Wells Fargo's asset sensitivity, suggests a potential short-term negative impact on its stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90