Latest news with #BofA
Yahoo
6 hours ago
- Business
- Yahoo
BofA analyst raises price target for Citi to $100, takes bullish view of Fraser's restructuring
It's been three years since Jane Fraser unveiled her strategic vision for Citi and, during that time, the CEO has come under significant criticism for her overhaul of the country's third biggest bank. But a Bank of America analyst thinks Fraser is giving the bank a shot at becoming competitive, according to a June 26 research note. With $2.5 trillion in total assets, Citi is one of the nation's largest banks, employing around 229,000 full-time workers as of last year. Fraser took over as Citi CEO in March 2021, and is widely considered the most powerful woman on Wall Street. (This year, Fraser ranked as the third most powerful woman in business, according to Fortune's Most Powerful Women's list.) Citi's stock has gained about 22% since she joined the bank. Citi is no stranger to overhauls. In the late 1990s, the bank underwent a major realignment after Citicorp's merger with Travelers which created Citigroup. Citi reorganized again after the 2008 financial crisis and then, in 2019, it undertook another restructuring. Fraser has come under considerable scrutiny for the latest Citi revamp. She's faced pressure from analysts, regulators and even internal dissent. But Ebrahim Poonawala, a BofA research analyst, thinks 'this time is different,' which is the title of his June 26 note. 'We consider Citi's turnaround as among the most complex in the corporate world, but Fraser had undertaken actions (such as international consumer exits, balance sheet de-risking, tech/personnel investments, streamlining businesses, hiring external talent) that gives Citi a fighting chance of becoming competitive, in our view,' Poonawala wrote in the note. Poonawala reiterated a 'Buy' rating for Citi and boosted his price target to $100 from $89. Fraser's big moves at Citi include divesting nearly all of Citi's international consumer banking franchises, exiting non-core operations, and overhauling leadership. Last year, Citi hired Vis Raghavan, ex-head of global investment banking at JPMorgan Chase executive, to lead global banking. It also added Tim Ryan, of PwC, to lead technology and business enablement, as well as Andy Sieg, of Merrill Wealth Management, to head up wealth. Over the past year, Citi's five businesses are tracking improved profitability, Poonawala said, adding that wealth and banking have acquired a sharper focus under new leadership. Absent a severe macroeconomic shock, the analyst expects Citi's momentum to continue, 'paving the way for management to deliver a more than 10% return on tangible common equity (ROTCE) on a sustainable basis starting in 2026.' ROTCE is a metric used to compare banks and how well they are using tangible common equity to generate profits. In the first quarter, Citi's efficiency ratio in each of its core business units declined versus the year ago quarter, Poonawala said. This reflects management's focus on controlling expenses, he said. This story was originally featured on 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
Business Insider
15 hours ago
- Business
- Business Insider
Bank of America explains how a market bubble could soon form — and lays out the perfect trade to combat it
A Bank of America analyst sees the risk of a speculative stock market bubble increasing as expectations that the Federal Reserve will cut interest rates continue to rise. In a note on Friday, BofA's Michael Hartnett highlighted a shift that he sees approaching, one that could lead to complications for investors—and he also shared his view on a trade to hedge such a scenario. Geopolitical tensions and tariff updates from President Donald Trump have been headwinds for markets. But with the Israel-Iran ceasefire continuing to hold, the focus has shifted to the possibility of interest rate cuts in July. Federal Reserve chairman Jerome Powell opted to leave rates steady at this month's meeting, but several top officials since then have come out in support for a cut as soon as next month. As Hartnett's team sees it, investors have begun to adjust for a higher likelihood that Powell will pivot in his stance and cut interest rates. On top of that, Trump's " Big Beautiful Bill" is likely to result in lower taxes for corporations and some households. "H2 bubble risk high as Trump/Powell pivot from tariffs to tax cuts/rate cuts to incite US$ devaluation/US stock bubble," Hartnett wrote. Hartnett and his team go on to say that the best way for investors to play the market against the backdrop of a potential bubble is by owning US growth stocks and international value stocks, presenting it as a means of finding a balance between risk and reward. They highlight this strategy as an effective way to guard against the potential impact of the predicted second-half bubble, as it offers exposure to growth in both US and international markets. Other experts have shared similar strategies for handling this year's high levels of market and economic uncertainty. Investor Bill Gross said this week he was eyeing a small bull market for stocks and a small bear market for bonds, highlighting the strategy of buying one and selling the other.
CNBC
15 hours ago
- Business
- CNBC
Equity investors showing greed, so may be time to take profits, says Bank of America's Hartnett
Overflowing investor enthusiasm is close to triggering some reliable sell signals in the stock market, according to Bank of America chief investment strategist Michael Hartnett. Money is pouring into equities as well as their fixed income counterpart, high-yield bonds, indicating that investor willingness to shrug off geopolitical headwinds is approaching danger levels, Hartnett said in his weekly note that examines where investors are putting their cash. "Greedy inflows saying take some profits off the table," the strategist wrote. One specific area where he pointed was the flows to global equity and high-yield fixed income. Over the past four weeks, the two categories have taken in 0.99% of cash relative to assets under management — just one one-hundredth of a percentage point from a tactical sell signal. Conversely, outflows exceeding 1% have been a reliable contrarian buy sign of excessive pessimism. The observations come with the S & P 500 punching through to a new record Friday as investors show a strong willingness to overlook a multitude of headwinds , from geopolitical tensions to President Donald Trump's tariffs. .SPX YTD line S & P 500 performance in 2025. There are other potential danger signs amid all the bullishness: BofA's Bull & Bear indicator of sentiment is at 5.8, the highest since November 2024. Also, nearly three-quarters of global stock indexes are trading above their 50- and 200-day moving averages. When that number, currently at 73%, hits 88%, that's been a good time to sell, Hartnett said. Hartnett said the S & P 500 above 6,300 would trigger a sell — still nearly 2% away, but a number to watch. U.S. stocks this year are on pace for their third-largest inflow of new cash ever, with $164 billion rolling in so far, according to BofA data. Large caps are on pace for record inflows, while small caps are on track for record outflows.
Yahoo
17 hours ago
- Business
- Yahoo
Mettler-Toledo price target raised to $1,260 from $1,200 at BofA
BofA raised the firm's price target on Mettler-Toledo (MTD) to $1,260 from $1,200 and keeps a Neutral rating on the shares. The firm is updating its price targets for stocks under its coverage in the Life Sciences & Diagnostic Tools, LSTs, sector, the analyst tells investors. The firm notes LSTs remain under pressure as uncertainty persists with the macro environment and U.S. government policies. Recent weeks, however, have seen some signs of improvement as tariff concerns have cools slightly, the firm adds. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on MTD: Disclaimer & DisclosureReport an Issue Mettler-Toledo initiated with an Overweight at Barclays Citi adds 'upside 90-day short-term view' on Mettler-Toledo MongoDB and Asana downgraded: Wall Street's top analyst calls UBS upgrades Mettler-Toledo to Buy into growth reacceleration UBS upgrades Mettler-Toledo to Buy ahead of growth reacceleration Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
17 hours ago
- Business
- Yahoo
Waters price target raised to $375 from $370 at BofA
BofA analyst Michael Ryskin raised the firm's price target on Waters (WAT) to $375 from $370 and keeps a Neutral rating on the shares. The firm is updating its price targets for stocks under its coverage in the Life Sciences & Diagnostic Tools, LSTs, sector, the analyst tells investors. The firm notes LSTs remain under pressure as uncertainty persists with the macro environment and U.S. government policies. Recent weeks, however, have seen some signs of improvement as tariff concerns have cools slightly, the firm adds. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on WAT: Disclaimer & DisclosureReport an Issue Waters Corporation Amends Credit Agreement for Flexibility Waters Corporation Re-elects Board at Annual Meeting Waters Corporation's Strategic Acquisition of Halo Labs: Enhancing Biologics Capabilities and Market Position Waters acquires Halo Labs Waters price target raised to $370 from $350 at BofA 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
