Latest news with #MikeMayo
CNBC
2 days ago
- Business
- CNBC
JPMorgan Chase gets a price target increase from Wells Fargo that signals 20% upside
JPMorgan Chase has a rosy outlook ahead, according to Wells Fargo. Wells Fargo analyst Mike Mayo reiterated his overweight rating on shares of JPMorgan Chase and raised his price target to $320 from $300. His updated forecast implies that the stock could rally 20%. "JPMorgan Chase has excelled at both offense and defense over the past decade, in which it has been gaining market share in all major business lines, while optimizing its businesses, showing consistent earnings relative to other global banks, and creating a 'fortress balance sheet' (as defined by its CEO)," Mayo wrote. "JPM should reflect our 'Goliath Is Winning' theme, as greater offense is expected to play with est. ongoing market share gains and improving operating efficiencies." JPM YTD mountain JPM YTD chart Mayo has renewed confidence in JPMorgan Chase's ability to generate new deposits. New branches would eventually aid the bank's earnings, justifying its premium valuation. "It has opened far more new branches than any other banks ( > 900 vs. > 200 for BAC and > 100 for FITB) and more than the rest of our universe combined. We are now more confident about the seasoning of its branches aiding earnings," Mayo added. JPMorgan also remains the "Goliath of Goliaths" as one of the top bank picks across categories such as customers, retail deposits and cards, per Mayo. The bank currently boasts $4.4 trillion in assets and $173 billion in revenue. Shares of JPMorgan have added 11% this year. Analysts are somewhat split on the stock. LSEG data shows that 14 of 26 of those covering the bank rate it a buy or strong buy. The remaining 12 have a hold rating on shares.
Yahoo
28-05-2025
- Business
- Yahoo
Wells Fargo Maintains Buy Rating on Bank of America (BAC) Stock
On May 28, Wells Fargo analyst Mike Mayo reiterated a Buy rating on Bank of America Corp. (NYSE:BAC) with an unchanged price target of $56. Mayo believes that Bank of America has significantly strengthened its balance sheet over the last 15 years, as evidenced by its performance in the Federal Reserve's stress tests. Additionally, the bank's recent earnings growth provides it with a greater cushion to absorb unexpected losses. This signifies that the bank will be much more resilient in challenging economic conditions. Pixabay/Public Domain The analyst also notes that stronger earnings reflect solid performance across key areas such as loan, deposit, and account growth, along with a more efficient cost structure. Based on his estimates, Bank of America is expected to grow EPS by over 40% over the next three years. Another reason behind Mayo's optimistic thesis is its attractive valuation. BAC currently trades at the lower end of its historical forward price-to-earnings range, which the analyst finds appealing. Bank of America Corp. (NYSE:BAC) is an American multinational investment bank and financial services holding company. It is the second-largest banking institution in the United States and the second-largest bank globally by market capitalization. While we acknowledge the potential of BAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BAC and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
Wells Fargo Maintains Buy Rating on Bank of America (BAC) Stock
On May 28, Wells Fargo analyst Mike Mayo reiterated a Buy rating on Bank of America Corp. (NYSE:BAC) with an unchanged price target of $56. Mayo believes that Bank of America has significantly strengthened its balance sheet over the last 15 years, as evidenced by its performance in the Federal Reserve's stress tests. Additionally, the bank's recent earnings growth provides it with a greater cushion to absorb unexpected losses. This signifies that the bank will be much more resilient in challenging economic conditions. Pixabay/Public Domain The analyst also notes that stronger earnings reflect solid performance across key areas such as loan, deposit, and account growth, along with a more efficient cost structure. Based on his estimates, Bank of America is expected to grow EPS by over 40% over the next three years. Another reason behind Mayo's optimistic thesis is its attractive valuation. BAC currently trades at the lower end of its historical forward price-to-earnings range, which the analyst finds appealing. Bank of America Corp. (NYSE:BAC) is an American multinational investment bank and financial services holding company. It is the second-largest banking institution in the United States and the second-largest bank globally by market capitalization. While we acknowledge the potential of BAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BAC and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
16-05-2025
- Business
- Globe and Mail
Warren Buffett Dumped His Citigroup Stock in Q1. Should You?
Citigroup (C) shares are inching down this morning following reports that legendary investor Warren Buffett no longer has a position in the financial services behemoth. According to a recent 13F filing with the Securities and Exchange Commission, his conglomerate, Berkshire Hathaway, has sold all 14.6 million shares of the bank that it held heading into 2025. Investors should note that the 13F filing is current as of March 31. Despite today's price action, Citi stock is up nearly 36% versus its year-to-date low. Why Is Buffett's Move Significant for Citi Stock? Berkshire's filing is significant for the bank stock since Buffett is known for his long-term, value-driven investment strategy. Him pulling out of C stock could, therefore, signal concerns about the Citi's future prospects, leading other investors to reconsider their positions as well. More importantly, the 'Oracle of Omaha' bailed on Citi shares to load up on Constellation Brands (STZ), indicating he prefers consumer goods over bank stocks for the back half of 2025. Wells Fargo Disagrees with Buffett on C Shares Despite Buffett's revelation, a senior Wells Fargo analyst, Mike Mayo remains uber bullish on Citi stock, primarily because it's currently going for about a 20% discount to its tangible book value. C shares remain worth owning because the firm's largest reorganization in 50 years has improved management's accountability, driving efficiency and lowering expenses, he told clients in a recent note. All in all, the bank stock is well-positioned to outperform even in a mild downturn as it continues to transition from 'value destruction to value creation,' the analyst added. Note that Citi reported its financial results for the first quarter that handily topped Street estimates in April. Plus, the company currently pays a dividend yield of 2.97%, which makes it all the more exciting to own in 2025. Mayo's $110 price target on the former Warren Buffett stock signals potential upside of close to 50% from here. Should You Invest in Citigroup in May? The rest of the Wall Street is positive on Citi's major overhaul in recent months as well. The consensus rating on C shares currently sits at ' Moderate Buy ' with the mean target of about $84 indicating potential upside of 12% from current levels.
Business Insider
15-05-2025
- Business
- Business Insider
Wells Fargo Sticks to Its Buy Rating for Citigroup (C)
Wells Fargo analyst Mike Mayo reiterated a Buy rating on Citigroup (C – Research Report) yesterday and set a price target of $110.00. The company's shares closed yesterday at $75.29. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Mayo covers the Financial sector, focusing on stocks such as Fifth Third Bancorp, JPMorgan Chase, and Citigroup. According to TipRanks, Mayo has an average return of 13.3% and a 65.52% success rate on recommended stocks. Currently, the analyst consensus on Citigroup is a Strong Buy with an average price target of $88.27, representing a 17.24% upside. In a report released on May 12, Barclays also maintained a Buy rating on the stock with a $95.00 price target. The company has a one-year high of $84.74 and a one-year low of $53.51. Currently, Citigroup has an average volume of 17.67M. Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of C in relation to earlier this year. Earlier this month, JOHN CUNNINGHAM DUGAN, a Director at C sold 4,417.00 shares for a total of $301,460.25.
