Banks Will Shine In 2025, Analyst Says, But Can They Dodge Loan Losses?
Portfolio Pulse from Lekha Gupta
HSBC Global Research analyst Saul Martinez has revised ratings on several banks, expressing a positive outlook for super regional banks in 2025. Martinez forecasts improved net interest income, EPS growth, and share buybacks for these banks. U.S. Bancorp was upgraded to Buy with a price target of $53, while The PNC Financial Services Group was upgraded to Hold with a price target of $155. Conversely, Bank of America was downgraded to Hold, though its price target was slightly increased to $39. Citigroup was excluded from the EPS growth forecast.
March 28, 2024 | 7:05 pm
News sentiment analysis
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NEGATIVE IMPACT
Citigroup was excluded from the positive EPS growth forecast for 2025, indicating a cautious outlook from the analyst.
Exclusion from the positive EPS growth forecast suggests concerns about Citigroup's future performance, potentially leading to a negative short-term impact on its stock price.
CONFIDENCE 65
IMPORTANCE 65
RELEVANCE 70
NEUTRAL IMPACT
Bank of America downgraded to Hold, with a slight increase in price target to $39, amid concerns over deposit costs and EPS estimates.
The downgrade to Hold, despite a slight increase in price target, indicates mixed expectations for Bank of America's performance, likely resulting in a neutral short-term impact on its stock price.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
The PNC Financial Services Group upgraded to Hold with a price target of $155, reflecting expected NII growth and a quicker path to share repurchases.
The upgrade and increased price target for PNC reflect an optimistic outlook on its NII growth and share repurchase strategy, which could positively influence its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 85
POSITIVE IMPACT
U.S. Bancorp upgraded to Buy with a new price target of $53, indicating a positive outlook for profitability and ROTCEs in 2025.
The upgrade to Buy and increase in price target suggest a strong confidence in U.S. Bancorp's future profitability and operational efficiency, likely leading to a positive short-term impact on its stock price.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90