Following the election, the
Moreover, the 10-year treasury rate is now expected to reach 2.50 percent by end-2017 and 2.75 percent by end-2018.
Kleinhanzl upgraded the ratings on Bank of America Corp (NYSE:
“As we look to 2018, we expect BAC to post 6.9 percent positive operating leverage as the combined benefit of higher rates and the ongoing cost save program help push BAC’s operating leverage to best among peers (2.6 percent average operating leverage),” the analyst commented.
Kleinhanzl believes investors would be “best positioned” to benefit from increased volatility and trading volumes by owning Goldman Sachs’ shares. The earnings estimates for 2017 and 2018 have been raised by 11.8 percent and 13.9 percent, respectively. While the price target has been raised, a faster improvement in global economic growth or deregulation on a wider scale may lend further upside.
Price Target Revisions
Kleinhanzl reiterated Outperform ratings on JPMorgan Chase & Co. (NYSE:
“We continue to believe that rising consensus estimates, actual increases in the fed funds rates, and actual policy proposals on the state of the regulatory environment in the future will keep Universal bank stocks moving upward — but the pace of relative outperformance will slow versus the recent performance period post election,” the analyst wrote.
At Last Check
- Bank of America was up 1.01 percent at $20.50.
- Bank of New York Mellon was up 0.47 percent at $47.25.
- Goldman Sachs was up 1.35 percent at $212.54.
- JPMorgan was up 0.87 percent at $79.
Image Credit: By Andrew Jameson (Own work) [CC BY-SA 3.0 or GFDL], via