What's up with Rochdale Securities analyst Dick Bove?
Approximately a month after recommending investors sell the banking sector he had turned around and recommended a basket of banks to buy, including Bank of America (NYSE:BAC), Bank of New York Mellon (NYSE:BK), Flagstar Bancorp (NYSE:FBC), PNC Financial (NYSE:PNC), Capital One Financial (NYSE:COF), State Street(NYSE:STT), SunTrust(NYSE:STI), Northern Trust (NYSE:NTRS) and Synovus (NYSE:SNV).
Bove's thinking in his turnaround for some banks in the sector is a number of banks are selling below their franchise and liquidation values.
"At this moment liquidity and values are more compelling than the next disaster," Bove wrote in a note to clients. The banks listed above are those identified by Bove as such.
Bove's operating definition of cash liquidation value is cash holdings (cash plus net Federal Reserve funds and repurchase agreements) in excess of tangible common equity.
Still, Bove confirms the issues banks face are still in place, and in that regard nothing has changed. They've apparently fallen quicker than Bove had anticipated.
Either that, or someone got hold of Bove and told him not to be so negative on the sector.
Showing posts with label PNC Financial. Show all posts
Showing posts with label PNC Financial. Show all posts
Wednesday, August 24, 2011
Tuesday, August 2, 2011
Apple (AAPL) (AMGN) (CVS) (PNC) (SAPE) (TRN) Price Target Changed
Apple, Inc. (NASDAQ: AAPL), Amgen, Inc. (NASDAQ: AMGN), CVS Caremark (NYSE: CVS), PNC Financial Services (NYSE: PNC), Sapient Co. (NASDAQ: SAPE) and Trinity Industries, Inc. (NYSE: TRN) price target adjusted by analysts.
Apple, Inc. (AAPL) had its price target raised by Canaccord Genuity from $510.00 to $515.00. They have a “Buy” rating on the company.
Amgen, Inc. (AMGN) had its price target raised by UBS AG (NYSE:UBS) to $58.00. They have a “Neutral” rating on the company.
CVS Caremark (CVS) had its price target raised by JPMorgan Chase & Co. (NYSE:JPM) to $50.00.
PNC Financial Services (PNC) had its price target lowered by Stifel Nicolaus from $85.00 to $82.00. They have a “Buy” rating on the company.
Sapient Co. (SAPE) had its price target raised by Stifel Nicolaus from $17.00 to $19.00. They have a “Buy” rating on the company.
Trinity Industries, Inc. (TRN) had its price target cut by Longbow Research from $44.00 to $41.00. They have a “Buy” rating on the company.
Apple, Inc. (AAPL) had its price target raised by Canaccord Genuity from $510.00 to $515.00. They have a “Buy” rating on the company.
Amgen, Inc. (AMGN) had its price target raised by UBS AG (NYSE:UBS) to $58.00. They have a “Neutral” rating on the company.
CVS Caremark (CVS) had its price target raised by JPMorgan Chase & Co. (NYSE:JPM) to $50.00.
PNC Financial Services (PNC) had its price target lowered by Stifel Nicolaus from $85.00 to $82.00. They have a “Buy” rating on the company.
Sapient Co. (SAPE) had its price target raised by Stifel Nicolaus from $17.00 to $19.00. They have a “Buy” rating on the company.
Trinity Industries, Inc. (TRN) had its price target cut by Longbow Research from $44.00 to $41.00. They have a “Buy” rating on the company.
Tuesday, July 26, 2011
General Electric (GE) (PNC) (FITB) (TRV) (HON) (RAI) EPS Estimates Changed
General Electric (NYSE: GE), PNC Financial Services (NYSE: PNC), Fifth Third Bancorp (NASDAQ: FITB), The Travelers Companies, Inc. (NYSE: TRV), Honeywell International Inc. (NYSE: HON) and Reynolds American, Inc. (NYSE: RAI) EPS estimates adjusted by analysts.
Citigroup (NYSE:C) raised its EPS estimate on Fifth Third Bancorp (FITB). They have a “Hold” rating and a price target of $14.00 on the company.
Credit Suisse (NYSE:CS) cuts its EPS estimate on General Electric (GE) ‘s. They have an “Outperform” rating and a price target of $23.00 on the company.
Citigroup lowered its EPS estimate on Honeywell International Inc. (HON). They have a “hold” rating and a price target of $65.00 on the company.
Citigroup boosted its EPS estimate on PNC Financial Services (PNC). They have a “Hold” rating and a price target of $64.00 on the company.
Morgan Stanley (NYSE:MS) cuts its EPS estimate on Reynolds American, Inc. (RAI). They have an “Equal Weight” rating and a price target of $38.00 on the company.
UBS AG lowered its EPS estimate on The Travelers Companies, Inc. (TRV). They have a “Buy” rating and a price target of $66.00 on the company.
Citigroup (NYSE:C) raised its EPS estimate on Fifth Third Bancorp (FITB). They have a “Hold” rating and a price target of $14.00 on the company.
Credit Suisse (NYSE:CS) cuts its EPS estimate on General Electric (GE) ‘s. They have an “Outperform” rating and a price target of $23.00 on the company.
Citigroup lowered its EPS estimate on Honeywell International Inc. (HON). They have a “hold” rating and a price target of $65.00 on the company.
Citigroup boosted its EPS estimate on PNC Financial Services (PNC). They have a “Hold” rating and a price target of $64.00 on the company.
Morgan Stanley (NYSE:MS) cuts its EPS estimate on Reynolds American, Inc. (RAI). They have an “Equal Weight” rating and a price target of $38.00 on the company.
UBS AG lowered its EPS estimate on The Travelers Companies, Inc. (TRV). They have a “Buy” rating and a price target of $66.00 on the company.
Monday, May 2, 2011
Dividend Yields for (BBT) (PNC) (USB) (FITB) (WFC)
Indicated dividend yields for Standard & Poor's 500 Index companies BB&T Corp (BBT), PNC Financial Services Group (PNC), US Bancorp (USB), Fifth Third Bancorp (FITB) and Wells Fargo & Co (WFC).
These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.
BB&T Corp (BBT) has a dividend yield of 2.38 percent on a declared dividend of $0.16. The payout ratio is 52.5 percent.
PNC Financial Services Group (PNC) has a dividend yield of 2.25 percent on a declared dividend of $0.35. The payout ratio is 22.0 percent.
US Bancorp (USB) has a dividend yield of 1.94 percent on a declared dividend of $0.12. The payout ratio is 22.9 percent.
Fifth Third Bancorp (FITB) has a dividend yield of 1.81 percent on a declared dividend of $0.06. The payout ratio is 62.5 percent.
Wells Fargo & Co (WFC) has a dividend yield of 1.65 percent on a declared dividend of $0.07. The payout ratio is 17.8 percent.
These dividend data indicate dividend yields of companies in the Standard & Poor's 500 Index as of Saturday, April 30. The yield is determined by taking the latest declared dividend, annualized and divided by the price of the stock. Payout ratios are calculated based on latest quarterly dividend paid divided by earnings.
BB&T Corp (BBT) has a dividend yield of 2.38 percent on a declared dividend of $0.16. The payout ratio is 52.5 percent.
PNC Financial Services Group (PNC) has a dividend yield of 2.25 percent on a declared dividend of $0.35. The payout ratio is 22.0 percent.
US Bancorp (USB) has a dividend yield of 1.94 percent on a declared dividend of $0.12. The payout ratio is 22.9 percent.
Fifth Third Bancorp (FITB) has a dividend yield of 1.81 percent on a declared dividend of $0.06. The payout ratio is 62.5 percent.
Wells Fargo & Co (WFC) has a dividend yield of 1.65 percent on a declared dividend of $0.07. The payout ratio is 17.8 percent.
Monday, March 14, 2011
Dividends for Wells Fargo (WFC) (JPM) (USB) (PNC)?
Expectations are the Federal Reserve is about to release certain qualified banks to reinstate or bump up dividends very soon, with Wells Fargo (NYSE:WFC), JPMorgan (NYSE:JPM) US Bancorp (NYSE:USB) and PNC Financial Services Group (NYSE:PNC) being among the top banks expected to get the go ahead. It could be as early as this week when the word comes down from the Fed.
This will of course be an extraordinary competitive advantage for those banks getting the news, at least for the time it takes for competitors to get their approval as well.
But even when they do, it's still a matter of the performance and health of the banks as to how much of a dividend they offer.
Wells Fargo closed Friday at $32.38, up $0.32, or 1.00 percent. JPMorgan closed at $45.74, gaining $0.21, or 0.46 percent. PNC Financial ended the day at $62.91, increasing $0.70, or 1.13 percent. U.S. Bankcorp closed at $27.16, down $0.02, or 0.07 percent.
This will of course be an extraordinary competitive advantage for those banks getting the news, at least for the time it takes for competitors to get their approval as well.
But even when they do, it's still a matter of the performance and health of the banks as to how much of a dividend they offer.
Wells Fargo closed Friday at $32.38, up $0.32, or 1.00 percent. JPMorgan closed at $45.74, gaining $0.21, or 0.46 percent. PNC Financial ended the day at $62.91, increasing $0.70, or 1.13 percent. U.S. Bankcorp closed at $27.16, down $0.02, or 0.07 percent.
Tuesday, February 8, 2011
JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), US Bancorp [NYSE:USB) Among Banks Likely to Raise Dividends
Among U.S. banks, RBC Capital says JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), US Bancorp (NYSE:USB), Bank of New York Mellon (NYSE:BK), Capital One Financial (NYSE:COF), PNC Financial Services Group (NYSE:PNC), State Street (NYSE:STT) are among those with the highest probability to raise their dividends.
Much of this is based upon the requirement of the U.S. government which said only banks that were well-capitalized would be allowed to boost their dividends, something RBC Capital Markets analyst Gerard Cassidy believes the banks listed above qualify for.
Not only that, Cassidy thinks they banks could raise dividends quicker than investors think they will.
So far there hasn't been much activity in that regard, but if one or two raise dividends, there's no doubt those who qualify will respond quickly with dividend increased of their own.
Much of this is based upon the requirement of the U.S. government which said only banks that were well-capitalized would be allowed to boost their dividends, something RBC Capital Markets analyst Gerard Cassidy believes the banks listed above qualify for.
Not only that, Cassidy thinks they banks could raise dividends quicker than investors think they will.
So far there hasn't been much activity in that regard, but if one or two raise dividends, there's no doubt those who qualify will respond quickly with dividend increased of their own.
Monday, January 24, 2011
BofA (NYSE:BAC), JPMorgan (NYSE:JPM), PNC Financial (NYSE:PNC) Top Ideas of FBR Capital
After 17 of the 25 major banks reported earnings, FBR Capital says there's little that has gotten them excited or changed their outlook of the industry, adding at this time their top picks are Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM) and PNC Financial (NYSE:PNC).
FBR noted, "With 17 of the top 25 banks by asset size having reported, we have insights into industry trends. Quarterly results felt like baby steps back toward whatever "normal" is, with some loan growth, slowly improving credit, hints about coming capital deployment, and improving profitability, but nothing exciting enough to change our view of the industry's earnings power or timeline to get there. Our main takeaways: (1) loan growth turned positive and outpaced securities growth for the first time in recent history; (2) NIM narrowed for most of the group, but net interest income was still generally good, with NIM compression reflecting marginal investment of excess liquidity at narrower spreads; (3) credit continues to improve, and reserve releases are accelerating a return to "normal"; (4) companies are eager to start deploying capital through dividends, buybacks, and acquisitions; (5) mortgage banking results were expectedly strong but should taper off in 2011. We continue to favor large-cap banks over regional banks, given their valuation and the fact that they have more levers to manage revenue headwinds. Our top ideas include BofA (BAC), JPMorgan (JPM), and PNC Financial (PNC)."
Bank of America was trading at $13.96, down $0.29, or 2.04 percent, as of 2:41 PM EST. JPMorgan was trading at $45.01, down $0.28, or 0.62 percent. PNC Financial was trading at $60.51, down $0.32, or 0.53 percent, as of 2:42 PM EST.
FBR noted, "With 17 of the top 25 banks by asset size having reported, we have insights into industry trends. Quarterly results felt like baby steps back toward whatever "normal" is, with some loan growth, slowly improving credit, hints about coming capital deployment, and improving profitability, but nothing exciting enough to change our view of the industry's earnings power or timeline to get there. Our main takeaways: (1) loan growth turned positive and outpaced securities growth for the first time in recent history; (2) NIM narrowed for most of the group, but net interest income was still generally good, with NIM compression reflecting marginal investment of excess liquidity at narrower spreads; (3) credit continues to improve, and reserve releases are accelerating a return to "normal"; (4) companies are eager to start deploying capital through dividends, buybacks, and acquisitions; (5) mortgage banking results were expectedly strong but should taper off in 2011. We continue to favor large-cap banks over regional banks, given their valuation and the fact that they have more levers to manage revenue headwinds. Our top ideas include BofA (BAC), JPMorgan (JPM), and PNC Financial (PNC)."
Bank of America was trading at $13.96, down $0.29, or 2.04 percent, as of 2:41 PM EST. JPMorgan was trading at $45.01, down $0.28, or 0.62 percent. PNC Financial was trading at $60.51, down $0.32, or 0.53 percent, as of 2:42 PM EST.
Friday, January 21, 2011
PNC Financial's (NYSE:PNC) EPS Lowered on Lower NIM Expectations
PNC Financial's (NYSE:PNC) latest quarterly results were underwhelming, and FBR Capital, citing lower NIM expectations, lowered their full year 2011 EPS estimate on the company.
FBR says, "...On the credit front, NCOs grew $177M as the company was proactive with moving problem commercial mortgages off the balance sheet. NPAs declined 6% after dropping 4% in 3Q10 and should continue to fall as PNC works through problem assets. We are adjusting our FY11 operating EPS estimates to $5.65 from $5.75 to take into account slightly lower NIM expectations and introducing our FY12 operating EPS estimate of $6.45. Our FY12E EPS is in line with our estimate for normalized earnings range of $5.67 to $6.93."
FBR Capital maintains an "Outperform/Top Pick" on PNC Financial (PNC), which was trading at $60.43, down $0.57, or 0.93 percent, as of 11:55 AM EST. FBR has a price target of $80 on PNC.
FBR says, "...On the credit front, NCOs grew $177M as the company was proactive with moving problem commercial mortgages off the balance sheet. NPAs declined 6% after dropping 4% in 3Q10 and should continue to fall as PNC works through problem assets. We are adjusting our FY11 operating EPS estimates to $5.65 from $5.75 to take into account slightly lower NIM expectations and introducing our FY12 operating EPS estimate of $6.45. Our FY12E EPS is in line with our estimate for normalized earnings range of $5.67 to $6.93."
FBR Capital maintains an "Outperform/Top Pick" on PNC Financial (PNC), which was trading at $60.43, down $0.57, or 0.93 percent, as of 11:55 AM EST. FBR has a price target of $80 on PNC.
Thursday, January 13, 2011
Dividends in 2011 and JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), Citigroup (NYSE:C), PNC Financial (NYSE:PNC), UBS (NYSE
The mounting pressure to have banks reinstate or increase dividends in 2011 is growing, and Canaccord Genuity commented on the outlook for Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), PNC Financial (NYSE:PNC), UBS (NYSE:UBS) and Wells Fargo (NYSE:WFC).
Canaccord said, "In an interview with CNBC on Tuesday afternoon, J.P. Morgan CEO Jamie Dimon stated that the company was ready to boost its dividend in Q2. In a separate speech at J.P. Morgan’s health-care conference in San Francisco, Dimon said he hoped to achieve a payout ratio of 35% of normalized earnings on the dividend, which is slightly higher than other executives have hinted, reported The Wall Street Journal. Before U.S. banks can raise dividends, they must receive approval from the Federal Reserve as part of their stress test. The banks, according to The Wall Street Journal, have submitted their stress test results, and await the results from the Fed in March. Goldman Sachs in its Q4 bank earnings preview commented that U.S. Bancorp, J.P. Morgan, PNC Financial, and Wells Fargo are expected to initiate or increase dividends shortly. For Bank of America and Citigroup, the ability for them to raise or re-instate dividends is uncertain. The Goldman analyst commented that the payout ratios for dividends are expected to be 20-25% of forward earnings, which implies yields of 2-3%. Some banks could also initiate share buyback programs, which Goldman estimates would put the effective capital deployment yield “closer to 4-5%."
JPMorgan was trading at $44.63, down $0.08, or 0.18 percent, as of 2:00 PM EST. Wells Fargo was at $32.03, up $0.02, or 0.06. Bank of America was trading at $14.86, down $0.13, or 0.87 percent. Citigroup was at $5.07, down $0.01, or 0.30 percent. PNC Financial was at $61.44, down $0.76, or 1.22 percent. UBS was trading at $17.36, up $0.08, or 0.49 percent.
Canaccord said, "In an interview with CNBC on Tuesday afternoon, J.P. Morgan CEO Jamie Dimon stated that the company was ready to boost its dividend in Q2. In a separate speech at J.P. Morgan’s health-care conference in San Francisco, Dimon said he hoped to achieve a payout ratio of 35% of normalized earnings on the dividend, which is slightly higher than other executives have hinted, reported The Wall Street Journal. Before U.S. banks can raise dividends, they must receive approval from the Federal Reserve as part of their stress test. The banks, according to The Wall Street Journal, have submitted their stress test results, and await the results from the Fed in March. Goldman Sachs in its Q4 bank earnings preview commented that U.S. Bancorp, J.P. Morgan, PNC Financial, and Wells Fargo are expected to initiate or increase dividends shortly. For Bank of America and Citigroup, the ability for them to raise or re-instate dividends is uncertain. The Goldman analyst commented that the payout ratios for dividends are expected to be 20-25% of forward earnings, which implies yields of 2-3%. Some banks could also initiate share buyback programs, which Goldman estimates would put the effective capital deployment yield “closer to 4-5%."
JPMorgan was trading at $44.63, down $0.08, or 0.18 percent, as of 2:00 PM EST. Wells Fargo was at $32.03, up $0.02, or 0.06. Bank of America was trading at $14.86, down $0.13, or 0.87 percent. Citigroup was at $5.07, down $0.01, or 0.30 percent. PNC Financial was at $61.44, down $0.76, or 1.22 percent. UBS was trading at $17.36, up $0.08, or 0.49 percent.
Monday, January 10, 2011
Bank of America (NYSE:BAC), PNC Financial (NYSE:PNC), JPMorgan (NYSE:JPM), U.S. Bancorp (NYSE:USB) FBR's Top Banking Picks
With bank earning season about to hit, FBR said their top recommendations for large caps are Bank of America (NYSE:BAC), PNC Financial (NYSE:PNC), JPMorgan (NYSE:JPM) and U.S. Bancorp (NYSE:USB).
Among regional banks they like Signature Bank (Nasdaq:SBNY) and National Penn Bancshares (Nasdaq:NPBC).
FBR said, "Bank earnings season kicks off with JP Morgan Chase (Outperform) reporting 4Q10 results on January 14. We expect that quarterly EPS will likely be in line to slightly better than expectations due to decent reserve releases, good mortgage banking earnings from historically low interest rates in the front end of the quarter, and better-than-expected NIM due to an increase in rates in the back half of the quarter. However, we recommend investors tread carefully going into the quarter given: (1) strong recent outperformance from the sector, and (2) the potential for cautious forecasts from management commentary could temper expectations. We favor the larger banks due to better efficiency and more diversified revenue sources; we are more cautious on regional banks, particularly those struggling to earn their cost of capital and relatively higher exposure to commercial real estate. We recommend PNC Financial Services Group (Outperform), JPM, U.S. Bancorp (Outperform), and Bank of America (Outperform), and note that there are company-specific opportunities among the regional banks, such as Signature Bank ( Outperform) and National Penn Bancshares (Outperform). Outside of improving credit trends, we are cautious on fundamental trends for the group, given our expectation for weak loan growth, adverse asset mix shifts, and lower mortgage banking revenues, which all are risks to 2011 earnings."
"Into 4Q10 results, we favor the large banks with diversified revenues, efficient operations, large reserves, and exposure to mortgage banking. We recommend PNC, JPM, USB and BAC, along with SBNY and NPBC among the regionals, but we remain cautious on less-efficient regional banks."
JPMorgan was trading at $43.26, down $0.38, or 0.87 percent, as of 11:33 AM EST. Bank of America was at $14.27, up $0.02, or 0.14 percent. PNC was at $61.42, down $0.52, or 0.84 percent. U.S. Bancorp was at $26.04, down $0.05, or 0.19 percent.
Among regional banks they like Signature Bank (Nasdaq:SBNY) and National Penn Bancshares (Nasdaq:NPBC).
FBR said, "Bank earnings season kicks off with JP Morgan Chase (Outperform) reporting 4Q10 results on January 14. We expect that quarterly EPS will likely be in line to slightly better than expectations due to decent reserve releases, good mortgage banking earnings from historically low interest rates in the front end of the quarter, and better-than-expected NIM due to an increase in rates in the back half of the quarter. However, we recommend investors tread carefully going into the quarter given: (1) strong recent outperformance from the sector, and (2) the potential for cautious forecasts from management commentary could temper expectations. We favor the larger banks due to better efficiency and more diversified revenue sources; we are more cautious on regional banks, particularly those struggling to earn their cost of capital and relatively higher exposure to commercial real estate. We recommend PNC Financial Services Group (Outperform), JPM, U.S. Bancorp (Outperform), and Bank of America (Outperform), and note that there are company-specific opportunities among the regional banks, such as Signature Bank ( Outperform) and National Penn Bancshares (Outperform). Outside of improving credit trends, we are cautious on fundamental trends for the group, given our expectation for weak loan growth, adverse asset mix shifts, and lower mortgage banking revenues, which all are risks to 2011 earnings."
"Into 4Q10 results, we favor the large banks with diversified revenues, efficient operations, large reserves, and exposure to mortgage banking. We recommend PNC, JPM, USB and BAC, along with SBNY and NPBC among the regionals, but we remain cautious on less-efficient regional banks."
JPMorgan was trading at $43.26, down $0.38, or 0.87 percent, as of 11:33 AM EST. Bank of America was at $14.27, up $0.02, or 0.14 percent. PNC was at $61.42, down $0.52, or 0.84 percent. U.S. Bancorp was at $26.04, down $0.05, or 0.19 percent.
Thursday, January 6, 2011
UBS (NYSE:UBS) Places "Short-Term Buy" on PNC Financial (NYSE:PNC)
PNC Financial (NYSE:PNC) has a "Short-term Buy" placed on them by UBS (NYSE:UBS), who feels consensus in the near term is too negative.
UBS said, "We think consensus estimates are too negative, and PNC will beat by 6% due to better lending revs (UBSe of $1.43 vs. consensus of $1.35). Also, PNC underperformed the bank index by 3.5pp in Dec ‘10. But we are maintaining our L/T Neutral rating, as we believe lending revenues will be under greater pres sure beyond 4Q10."
UBS maintains a "Long-Term Neutral" rating on PNC Financial, which was trading at $62.69, up $0.88, or 1.44 percent.
UBS said, "We think consensus estimates are too negative, and PNC will beat by 6% due to better lending revs (UBSe of $1.43 vs. consensus of $1.35). Also, PNC underperformed the bank index by 3.5pp in Dec ‘10. But we are maintaining our L/T Neutral rating, as we believe lending revenues will be under greater pres sure beyond 4Q10."
UBS maintains a "Long-Term Neutral" rating on PNC Financial, which was trading at $62.69, up $0.88, or 1.44 percent.
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