Bank Investor Days Are Almost Here

Bank stocks have had a rough go of it so far in 2016, but the next big catalyst for three top names could be coming next week. In a new report, Jefferies analyst Ken Usdin previews what shareholders should expect from next week’s investor days for JPMorgan Chase & Co. JPM, State Street Corp STT and Zions Bancorporation ZION.

According TO Usdin, it’s unlikely that the investor days will produce any major news, but they should all be helpful in providing details on key drivers and strategic initiatives.

“The set-up will focus on specific trade-offs between near-term EPS stability and longer-term risks (e.g. credit, growth, rates, market activity),” he explains.

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For J.P. Morgan, Usdin anticipates no material change to 2016 buybacks and nothing to significantly alter Jefferies’ estimates of flat EPS growth in 2016.

For State Street, Usdin anticipates further details on recently-announced expense initiatives and clarification on long-term NIM compression dynamics.

Usdin will be interested to see how aggressive Zions plans to be with its capital return request for 2016’s CCAR given concerns over the performance of energy-related assets.

Headed into the three investor days, Jefferies has Buy ratings on J.P. Morgan and State Street and a Hold rating on Zions.

Disclosure: the author holds no position in the stocks mentioned.