J.P. Morgan analyst Vivek Juneja on Tuesday cut price targets on nine major U.S. banks due to his “cautious” view on the sector in the face of increased regulatory requirements, declining net interest income and higher expenses pressured by inflation. The comment came a day ahead of the Fed’s stress tests results on bank capital. “Some of our banks with lower reserves/loans are likely to see bigger reserve builds such as Wells Fargo,” Juneja said. He said he expects bank stocks to remain choppy in the near term. Investment banking activity is showing some “green shoots” but trading revenue has fallen amid volatility, he said. Bank of America’s BAC target price was reduced to $31 from $32.50, Citigroup Inc.’s C price target was cut to $50.50 from $53, and Wells Fargo & Co.’s WFC target price was reduced by $1 to $42. U.S. Bancorp’s USB target price was cut to $35 from $36.50, Truist Financial TFC saw its price target reduced to $32.50 from $34 and PNC Financial PNC was reduced to $132 from $138. Citizens Financial Group’s CFG price target was cut by $2.50 to $29 and Fifth Third Bancorp’s FITB price target was reduced to $27 from $28.50 and Regions Financial’s RF price target was lowered to $19.50 from $20.
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