Raymond James Initiates Coverage On Bank Of America, PNC And Wells Fargo

On Tuesday Raymond James resumed coverage on Bank of America Corp (NYSE: BAC), PNC Financial Services Group Inc (NYSE: PNC) and Wells Fargo & Co (NYSE: WFC).

Bank of America: Outperform, $18.00 price target

"While ongoing investments in the franchise, coupled with subdued balance sheet growth, will likely inhibit material profitability improvement in the short to intermediate term, a more streamlined company with declining expenses stemming from the financial crisis should enable more direct control over operating leverage and EPS growth from here."

PNC: Market Perform, price target unavailable.

"We see the potential for negative earnings revisions should higher interest rates not materialize this year...Additionally, expected 1Q15 seasonal fee income and expense headwinds could prove greater than forecast, although ongoing reserve release will be a partial offset. In the intermediate- to longer-term, higher interest rates (PNC is one of the most asset-sensitive banks in our coverage), deeper penetration of its client base and Southeast markets, and benefits from technology investments should drive EPS growth and enhance profitability."

Wells Fargo: Outperform, $61 price target.

"Wells Fargo has distinguished itself with a strong cross-sell culture, conservative underwriting, and a diversified franchise. We believe better-than-peer EPS growth and profitability combined with a lower risk profile warrant a premium P/E and P/TBV multiple to its large-cap bank peers."

All three stocks were trending down on Tuesday morning.