BofA Raising Targets on Regional Banks After QE3 (BAC, USB, WFC, PNC, FRC, SBNY, SUSQ)
Bank of America Corp. (NYSE: BAC) is issuing coverage updates on the U.S. regional banking sector, with price target upgrades as it is “mining the melt-up” seen in the rise in bank stock prices.
Bank of America is rolling forward its P/E and price-to-tangible-book-value expectations to reflect forward earnings and to reflect expected tangible book values for 2013.
U.S. Bancorp (NYSE: USB) is still a Buy and saw its price target raised from $35 to $37.
Wells Fargo & Co. (NYSE: WFC) is still a Buy and saw its price target raised from $36 to $38.
PNC Financial Services Group Inc. (NYSE: PNC) is still a Buy and saw its target raised from $66 to $68.
First Republic Bank (NYSE: FRC) is still a Buy and saw its target raised from $36 to $38.
Signature Bank (NASDAQ: SBNY) is still a Buy and saw its target raised from $68 to $71.
Susquehanna Bancshares Inc. (NASDAQ: SUSQ) is still a Buy and saw its target raised from $12 to $12.50.
The report noted:
Both the KBW Banks Index (BKX) and the KBW Regional Banks Index (KRX) have broken above important resistance levels just as the Federal Reserve has announced another round of quantitative easing (QE3). In our view, this supports the case for additional short-term upside in the large-cap and regional banks.
JON C. OGG