Here’s what Wall St. experts are saying about these banks ahead of earnings

JPMorgan (JPM), Wells Fargo (WFC), and Morgan Stanley (MS) are scheduled to announce quarterly results on April 11. What to watch for:

ATTRACTIVE ENTRY POINT: This week, Piper Sandler upgraded Wells Fargo to Overweight from Neutral with a $77 price target. The firm says that while it has thought highly of Wells’ recent move from defense to offense, as well as the heightened pace of regulatory resolution, its only hang-up has been the stock’s valuation and outperformance, which Piper felt appropriately captured the company’s improving fortunes. However, Wells has not been spared in the market’s recent swoon. Thus, while much remains to be written for the group’s story, the firm considers the entry point for Wells much more attractive.

Meanwhile, Morgan Stanley raised the firm’s price target on Wells Fargo to $80 from $79, keeping an Overweight rating on the shares. The firm says recent trade developments drive up recession risk. Morgan Stanley now expects slower GDP growth with rising economic uncertainty to push out the capital markets rebound, incrementally slow loan growth, and drive net charge offs across consumer and commercial loans slightly above its prior estimates. The firm moved its large cap bank industry view from Attractive to In-Line. Morgan Stanley also lowered the firm’s price target on JPMorgan to $235 from $275 and kept an Equal Weight rating on the shares.

Last week, Truist lowered the firm’s price target on Wells Fargo to $84 from $86, while keeping a Buy rating on the shares as part of a broader research note on Financials previewing Q1 results. The firm notes that while sell-side EPS estimates are unlikely to incorporate full-fledged recession as their base case, the debate about recession odds should continue to take place in bank stock valuation multiples rather than in estimate revisions. Truist also lowered its price target on hold-rated JPMorgan to $264 from $268.

TARGET CUTS: Earlier this month, BofA lowered the firm’s price target on JPMorgan to $284 from $285 but kept a Buy rating on the shares. The firm expects banks to strike a cautious tone during Q1 earnings calls that kick off on April 11 with JPMorgan, Wells Fargo, and Morgan Stanley, emphasizing downside risks driven by policy uncertainties. While the firm sees it as “too soon to expect meaningful credit cracks,” it sees potential for macro-led reserve builds on increased weighting to downside scenarios. BofA also lowered the firm’s price target on Buy-rated Morgan Stanley to $144 from $150.