Goldman Sachs Favors Citigroup and JPMorgan Over Bank of America (BAC, C, JPM)

Goldman Sachs reported on Monday that it views Citigroup (C) and JPMorgan Chase & Co.(JPM) as better buys than Bank of America (BAC).

The firm reported on Monday that it has maintained a “Conviction Buy” on Citigroup, and has increased its price target from $55 to $56. This price target suggests a 19% increase from the stock’s current price of $45.34.

The firms analyst, Richard Ramsden said that based on risk and reward, he favors both Citigroup and JPMorgan over Bank of America.

Ramsden commented, “both C and JPM trade at lower multiples than BAC despite offering better long-term growth profiles. While near-term capital returns at C and JPM have been on the disappointing side, we view them as better positioned to return capital over the longer term, given fewer mortgage overhangs, a leading stressed capital position for C (the determining factor in capital returns now), as well as lower volatility EPS for JPM, which supports higher dividends under the CCAR.”

Bank of America shares were mostly flat during Monday morning trading. The stock has increased 27% in the past year.
Citigroup shares were mostly flat during Monday morning trading. The stock has increased 22% in the past year.
JPMorgan shares were mostly flat during Monday morning trading. The stock has increased 8% in the past year.

The Bottom Line
Shares of Bank of America Corp (BAC) have a 0.32% yield, based on Monday morning’s price of $12.59
Shares of Citigroup Inc. (C) have a .09% yield, based on Monday morning’s price of $45.48.
Shares of JPMorgan Chase & Co. (JPM) have a 3.09% yield, based on Monday morning’s price of $49.12.

Bank of America Corp (BAC), Citigroup Inc. (C), and JPMorgan Chase & Co. (JPM) are not recommended at this time, holding Dividend.com DARS™ Ratings of 3.1, 3.2 and 3.4 out of 5 stars respectively.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here