UPDATE 1-Citigroup cuts estimates, targets on US banks

venerdì 11 luglio 2008 17:45
 

 (Recasts, adds details, share movement)
 July 11 (Reuters) - Citigroup cut its estimates and price
targets on several U.S. banks, including JPMorgan Chase & Co
(JPM.N: Quotazione) and Bank of America Corp (BAC.N: Quotazione), on higher assumed
losses on credit card, home equity, residential construction,
and sustained weak capital markets environment.
 In a research note, analyst Keith Horowitz said he
incorporated his mark to market estimate for Bank of America of
$1.2 billion, which included a $530 million subprime
collateralized debt obligation-related hit, $430 million
monoline exposure, and $280 million auction rate securities.
 Horowitz said he expects U.S. Midwest regional bank KeyCorp
(KEY.N: Quotazione) to post a loss of $2.97 a share in the second quarter.
 Shares of Wachovia were down 13 percent at $11.39 in
morning trade on the New York Stock Exchange, while those of
JPMorgan fell 6 percent to $32.51. Shares of Bank of America
fell 6 percent to $21.03.
 Company                Price target     2008 earnings per
share
                                            estimate ($)
                        Current   Prior    Current Prior
 JPMorgan Chase (JPM.N: Quotazione) $38       $50       2.10   2.80
 Bank of America (BAC.N: Quotazione)$23       $38       1.93   2.65
 Wachovia WB.N        $14       $25      -1.24   1.50
 PNC Financial
 Services (PNC.N: Quotazione)       $56       $60       4.80   5.05
 SunTrust Banks (STI.N: Quotazione) $34       $54       2.60   3.00
 US Bancorp (USB.N: Quotazione)     $24       $29       2.30   2.60
 M&T Bank (MTB.N: Quotazione)       $73       $86       6.35   6.70
 Synovus Financial      $9        $10.50    0.52   0.64
 (SNV.N: Quotazione)
 Wells Fargo (WFC.N: Quotazione)    $25       $28       2.10   2.40
 Regions Financial      $11       $21       1.76   1.95
 (RF.N: Quotazione)
 KeyCorp (KEY.N: Quotazione)        $11       $15      -1.62  -2.00
 TCF Financial (TCB.N: Quotazione)  $14       $18       1.39   1.50
 Comerica (CMA.N: Quotazione)       $20       $30       2.15   2.80
 (Reporting by Swagata Gupta in Bangalore; Editing by Deepak
Kannan)