Oppenheimer Downgrades Major Banks, Warns Valuations Are Priced for Perfection

Analyst
โดย Motley Fool·Read original
Summary · why it matters

Oppenheimer analysts have downgraded several large-cap banks ahead of second-quarter earnings, warning that current valuations leave little room for upside. Goldman Sachs and Morgan Stanley were cut from perform to underperform, while Citigroup and Bank of America were lowered from outperform to perform. The analysts cited stretched valuations and the risk that investment banking activity could slow if higher bond yields or AI concerns delay anticipated IPOs from companies like OpenAI and Anthropic. They recommend rotating into super-regional banks such as U.S. Bancorp and PNC Financial Services Group, as well as alternative asset managers like Ares Management and KKR, which they see as offering greater upside.

Impact on stocks 8

Financials▼ · 6 stocks
Bank of America Corp
BAC
▼ NegativeCapitalrelevance

Oppenheimer downgraded Bank of America from outperform to perform, citing stretched valuations and risk of slowing investment banking activity.

Goldman Sachs Group Inc
GS
▼ NegativeCapitalrelevance

Oppenheimer downgraded Goldman Sachs from perform to underperform, citing stretched valuations and risk of slowing investment banking activity.

Morgan Stanley
MS
▼ NegativeCapitalrelevance

Oppenheimer downgraded Morgan Stanley from perform to underperform, citing stretched valuations and risk of slowing investment banking activity.

Digital Finance & Tokenization▼ · 1 stocks
Citigroup Inc.
C
▼ NegativeCapitalrelevance

Oppenheimer downgraded Citigroup from outperform to perform, citing stretched valuations and risk of slowing investment banking activity.

Aging Population▲ · 1 stocks
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