visimoney
TLDR:
- Bank of America, Goldman Sachs, Citigroup, and Bank of New York Mellon have received upgrades from Morgan Stanley due to potential changes in capital requirements by the US Federal Reserve.
- Analyst Betsy Graseck believes that if banks are required to hold less capital, they may increase share buybacks which would benefit shareholders.
- The capital markets are also rebounding, with the return of the IPO market and increasing M&A deals, which will benefit the big banks.
- Morgan Stanley upgraded the stocks of Bank of America and Goldman Sachs to overweight from equal-weight, and Citigroup to overweight from underweight.
- Bank of America’s price target was increased to $41 from $32, while Goldman’s price target was lifted to $449 from $333.
Morgan Stanley has upgraded the shares of Bank of America, Goldman Sachs, Citigroup, and Bank of New York Mellon, citing optimism about changes in capital requirements by the US Federal Reserve. Analyst Betsy Graseck believes that if banks are required to hold less capital, they may increase share buybacks, which would benefit shareholders. The capital markets are also rebounding, with the return of the IPO market and increasing M&A deals, which will benefit the big banks. Morgan Stanley upgraded the stocks of Bank of America and Goldman Sachs to overweight from equal-weight, and Citigroup to overweight from underweight. Bank of America’s price target was increased to $41 from $32, while Goldman’s price target was lifted to $449 from $333.
