Deutsche Bank analyst Matt O’Connor on Friday downgraded megabank stocks Bank of America Corp.
BAC,
and J.P.Morgan Chase & Co.
JPM,
to hold from buy. Analysts cut the price target on Bank of America to $36 a share from $45 a share and trimmed JPMorgan’s price target to $145 from $155. “It’s tempting to get more positive given stocks are already downsharply, inflation seems to be slowing and Fed rate hikes may be coming to an end,” O’Connor said. “But our gut is that stocks will set new lows and fully (or close to it) price in a U.S. recession suggesting there’s more risk from here.” Deutsche Bank also hiked its rating on PNC Financial Services Group
PNC,
to buy from hold and cut its price target to $190 from $200 and downgraded Truist Financial Corp.
TFC,
to hold from buy and reduced its price target to $48 from $61. In the past 12 months, shares of Bank of America are down 28.7%, JPMorgan stock is lower by 17% and the S&P 500 is off by 17.6%. PNC is down 26.7% in the past 12 months and Truist is down by 29.1%.
