|Bid||0.00 x 4000|
|Ask||0.00 x 21500|
|Day's Range||15.24 - 15.96|
|52 Week Range||6.94 - 17.54|
|Beta (5Y Monthly)||1.62|
|PE Ratio (TTM)||19.30|
|Forward Dividend & Yield||0.62 (3.97%)|
|Ex-Dividend Date||Dec 03, 2020|
|1y Target Est||N/A|
Analysts at Morgan Stanley instituted a number of ratings changes on U.S. large cap banks Monday while still remaining largely bullish on the sector. Not to mention, banks will eventually be permitted to resume stock buybacks and the billions of dollars they set aside for looming loan losses will eventually be released into earnings, providing two other tailwinds for the struggling sector. “We believe banks are set to fire on all cylinders,” Betsy Graseck, an analyst at Morgan Stanley, wrote in a note Monday, projecting that the median stock upside for banks is 36%, while the median earnings per share upside is 47%.
Morgan Stanley is overall bullish on bank stocks in 2021, but downgraded three of the largest Monday.The Analyst: Morgan Stanley analyst Betsy Graseck issued the following ratings changes among large-cap banks and consumer finance stocks: * Synchrony Financial (NYSE: SYF) upgraded from Equal Weight to Overweight, price target raised from $27 to $51. * Capital One Financial Corp. (NYSE: COF) upgraded from Equal Weight to Overweight, price target raised from $77 to $131. * Regions Financial Corp (NYSE: RF) upgraded from Equal Weight to Overweight, price target raised from $14 to $22. * Wells Fargo & Co (NYSE: WFC) upgraded from Equal Weight to Overweight, price target raised from $23 to $40. * State Street Corp (NYSE: STT) upgraded from Underweight to Overweight, price target raised from $69 to $99. * U.S. Bancorp (NYSE: USB) upgraded from Underweight to Equal Weight, price target raised from $43 to $57. * Bank of New York Mellon Corp (NYSE: BK) upgraded from Underweight to Equal Weight, price target raised from $40 to $51. * Discover Financial Services (NYSE: DFS) downgraded from Overweight to Equal Weight, price target raised from $68 to $107. * SEI Investments Company (NYSE: SEIC) downgraded from Overweight to Equal Weight, price target raised from $63 to $72. * Bank of America Corp (NYSE: BAC) downgraded from Overweight to Underweight, price target raised from $24 to $34. * JPMorgan Chase & Co. (NYSE: JPM) downgraded from Overweight to Underweight, price target raised from $106 to $142. * Goldman Sachs Group Inc (NYSE: GS) downgraded from Equal Weight to Underweight, price target raised from $208 to $273.Related Link: How Bank Of America Has Become One Of Warren Buffett's Best InvestmentsThe Bank Takeaways: In the updated ratings note, Graseck said she sees four major tailwinds for banks in 2021, driven by optimism surrounding at least one highly effective coronavirus vaccine becoming widely available in the near future."It provides a high degree of certainty that this recession will end in 2021, driving up long end interest rates, accelerating loan growth, driving down unemployment and allowing banks to resume buybacks," the analyst said. Most large banks are already prepared for unemployment rates in the 6% to 9% range by the fourth quarter of 2021, she said.Therefore, Graseck said an economic rebound should free up significant capital starting in the second half of next year.Graseck downgraded three of the largest U.S. bank stocks: Bank of America, JPMorgan and Goldman Sachs. All three have rallied significantly off their 2020 lows.Yet the silver lining for big bank investors is that Grasek raised her price targets for all three stocks significantly heading into 2021.Benzinga's Take: It seems like Grasek is anticipating a bullish environment for bank stocks in 2021.Even the stocks she downgraded to Underperform each have at least 16% upside ahead in order to hit her updated price targets.See more from Benzinga * Click here for options trades from Benzinga * Bitcoin Takes A Thanksgiving Swoon * Top Iranian Nuclear Scientist Killed: What You Should Know(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Regions Financial (RF) has seen solid earnings estimate revision activity over the past month, and belongs to a strong industry as well.