Earnings season is about to kick off, and while Oggonomics doesn’t forecast earnings it certainly watches when Wall Street issues strategic calls ahead of earnings and key events. That’s what being a strategic investors is all about.
So, what happens when Wall Street analysts are up-talking their rivals? Is that a sign that they are also up-talking their own bank’s stock?
Oggonomics has recently pondered whether or not banks are about to enter “their next golden age.” Now the proof is simply up to them (and perhaps up to several dozen other factors that may be outside of those banks’ direct control).
THE TWO MORGANS
Keefe Bruyette & Woods (KBW) made the most bullish moves on JPMorgan Chase & Co. (NYSE: JPM) and Morgan Stanley (NYSE: MS) as both banks were upgraded to Outperform ahead of earnings. JPMorgan’s price target was raised to $327 from $253 (for an implied 16% upside). KBW cited long-term structural benefits of scale and superior business models for large-cap banks.
JPMorgan also saw other hikes ahead of its report as well. Truist took its target to $290 from $280 and maintained a Hold rating, while Morningstar lifted its target to $235 from $195. Other calls from Deutsche Bank, Wells Fargo and Seaport Global also raised their price targets.
There was one cautionary note from HSBAC regarding JPMorgan’s stock. HSBC downgraded JPMorgan Chase to Reduce from Hold, but it did still raise its price target to $259 from $237. HSBC simply noted stretched valuations after spring rally.
Morgan Stanley saw some price target action ahead of earnings as well. Morgan Stanley’s price target was raised to $160 from $127 (for an implied 14% upside), also citing long-term structural benefits of scale and superior business models for large-cap banks. Wells Fargo maintained its Equal-Weight rating and raised its target to $145 from $120 on Morgan Stanley.
BANK OF AMERICA
Bank of America Corporation (NYSE: BAC) was also getting some love ahead of earnings. Truist Securities reiterated its Buy rating and raised its target to $53 from $51 in the call. Then again, HSBC also downgraded BofA’s rating to Hold from Buy even as it raised its price target to $51 from $47 in that downgrade.
BofA was reiterated as Outperform and its target was raised to $53 from 445 on July 2. And three more analyst calls were seen on BofA in the prior 10 days:
- Citi reiterated Buy on BofA and target raised to $54 from $50
- Baird downgraded BofA to Neutral from Outperform, maintaining its $52 target
- Morgan Stanley reiterated its Overweight rating on BofA and raised its target to $49 from $47
ALSO READ: PREDICTING THE NEXT NEW WALL STREET FINANCE LEADER IS FAR FROM EASY (NOR UNIVERSAL!!!)
WELLS FARGO
Wells Fargo & Co. (NYSE: WFC) had been getting all sorts of attention after finally being released from the Federal Reserve’s oversight watchdog status. The bank is finally going to be able to grow its share again without as much government and regulatory supervision. Truist Securities reiterated its Buy rating on Wells Fargo and raised its target price up to $86 from $83 based on market share and growth expectations looking later into 2025 and into 2026+. The one issue that should have been noticed is that Raymond James downgraded Wells Fargo to Market Perform from Strong Buy, noting that its double-digit run since the Fed’s “release” has priced in much of that anticipated growth and market share gains.
Oggonomics covered how the Wells Fargo polling of analyst had drastically risen to perhaps a secular theme rather than just a short-term strategic theme. Goldman Sachs, Piper Sandler, Evercore ISI, Morgan Stanley, BofA, Raymond James and Argus were some of the firms upping targets and expectations in that notation.
DISCLAIMERS
Please note that all analyst ratings and price targets mentioned above were issued by each firm named in this summary. Their ratings and targets may differ greatly from other firms on Wall Street which were not named.
Oggonomics does not issue any formal ratings and does not maintain any price targets of its own on any of these stocks.
Also please note that no analyst ratings and price targets, even those with the strongest conviction or upside price targets, ever come with any guarantees of profits and they never contain money-back guarantees in case you lose money.
