Four banks downgraded at Wolfe as part of 2026 industry outlook

As previously reported, Wolfe Research downgraded JPMorgan (JPM), Bank of America (BAC), U.S. Bancorp (USB) and M&T Bank (MTB), all to Peer Perform from Outperform, with no price targets as part of the firm’s Top 10 Themes for 2026 note on the Banks, Brokers, and Alternative Managers. Most buy-siders expect the Money Centers group to continue to outperform in 2026, but the firm’s take is “less sanguine” after the Money Center group rallied 40% in 2025, the analyst tells investors. For JPMorgan, the analyst sees modest upside to numbers, but a valuation that is “full.” For BofA, the firm says its downgrade is “tougher on valuation,” but it sees risk to forward estimates as net interest income tailwinds are fully baked and expenses should “surprise negatively.” For the other two banks the downgrades reflect limited catalysts for multiple re-rating above long term average multiples, the analyst tells investors.