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Barclays Previews Big Bank Earnings

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As earnings season gets into full swing this week, analysts at Barclays provided a Q1 earnings preview for seven big American banks. Despite an overall positive industry view, analysts see a tough Q1 for financials. Here’s what they had to say about these banks:

KeyCorp (NYSE: KEY)

Analysts’ EPS expectation of $0.25 is slightly below the $0.26 consensus. Lower fee income and income from investment banking, debt placement and corporate-owned life insurance will weigh on earnings. Barclays has an Underweight rating on KeyCorp and a $15 target for the stock.

JPMorgan Chase & Co (NYSE: JPM)

Barclays expects Q1 EPS of $1.43, slightly above consensus. Cost cutting and higher trading revenues, mortgage fees and loan balances in Q1 should have helped the bottom line. Barclays has an Overweight rating on JP Morgan and a $73 target for the stock.

Related Link: Poll: What's Your Favorite Big Bank Stock Before Earnings?

Goldman Sachs Group Inc (NYSE: GS)

Barclays is calling for an above-consensus EPS of $4.30 on the strength of FICC results that likely benefited from high forex volatility. Barclays has an Equal Weight rating on Goldman and a $220 target for the stock.

Comerica Inc (NYSE: CMA)

Barclays is projecting a slight miss on EPS of $0.71 versus consensus of $0.73. Analysts see lower rates and declining purchase weighing on net interest margin. Barclays has an Underweight rating on Comerica and a $50 target for the stock.

Citigroup Inc (NYSE: C)

Barclays is calling for EPS of $1.42, slightly above consensus. They see seasonally strong fee income and lower repositioning costs during the quarter. Barclays has an Overweight rating on Citigroup and a $65 target for the stock.

Bank of America Corp (NYSE: BAC)

Analysts’ EPS expectation of $0.28 is slightly below the $0.29 consensus. Analysts believe that trading results will likely be down year-over-year. Barclays has an Equal Weight rating on Bank of America and a $20 target for the stock.

Morgan Stanley (NYSE: MS)

Barclays expects Q1 EPS of $0.77. They believe that the underwriting and trading segments likely had a slow Q1. Barclays has an Equal Weight rating on Bank of America and a $43 target for the stock.

Disclosure: the author owns shares of Bank of America.

Latest Ratings for KEY

DateFirmActionFromTo
Mar 2017DA DavidsonInitiates Coverage OnNeutral
Jan 2017UBSReinstatesBuyNeutral
Nov 2016Deutsche BankMaintainsHold

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