{"id":16349,"date":"2023-05-31T16:13:36","date_gmt":"2023-05-31T20:13:36","guid":{"rendered":"https:\/\/ifintechworld.com\/uncategorized\/bank-valuations-price-in-worst-of-all-worlds-says-wells-fargo-analyst\/"},"modified":"2023-05-31T16:13:37","modified_gmt":"2023-05-31T20:13:37","slug":"bank-valuations-price-in-worst-of-all-worlds-says-wells-fargo-analyst","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=16349","title":{"rendered":"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst"},"content":{"rendered":"<div>\n<div id=\"imgCarousel\" class=\"imgCarousel\">\n<p><span class=\"text\"><\/span><br \/>\n<i class=\"imgGrad\"><\/i>\n<\/div>\n<p>(Bloomberg) &#8212; Bank stocks are being overly punished by investors in the wake of the regional banking crisis, according to Wells Fargo\u2019s Mike Mayo.\u00a0<\/p>\n<p>Current assumptions factor in the \u201cworst of all worlds\u201d and overlook opportunities in the uncertainty surrounding the sector, the veteran banking analyst wrote in a note to clients. While banks are facing increased regulation, lower rates and a potential recession, some lenders are in a \u201czone of attractiveness\u201d that could see their multiples increase by a third, Mayo said.<\/p>\n<p>\u201cWe do not believe the group is \u2018uninvestable\u2019 or has 30% to 50% EPS downside risk as some assert,\u201d he added.<\/p>\n<p>Mayo still favors the big banks \u00a0\u2014 including JPMorgan Chase &amp; Co. (NYSE:), <span itemscope=\"\" itemtype=\"http:\/\/schema.org\/Corporation\"><span itemprop=\"name\"> Citigroup <\/span><\/span> Inc (NYSE:). and Bank of America Corp (NYSE:). \u2014 which have seen business flow their way after a few smaller regional lenders failed. But, he says he\u2019s also keeping a close eye on U.S. Bancorp and <span itemscope=\"\" itemtype=\"http:\/\/schema.org\/Corporation\"><span itemprop=\"name\"> State Street <\/span><\/span> Corp (NYSE:). after Well Fargo\u2019s \u201ckitchen sink\u201d analysis of various 2025 scenarios showed upside surprises for those two firms.<\/p>\n<p>Read more: Mayo Cuts Price Targets for Banks, Saying \u2018Goliath Is Winning\u2019<\/p>\n<p>Mayo also argues that easing levels of inflation alone are enough to justify higher bank valuations.<\/p>\n<p>He says data dating back to 1960 shows a strong correlation between lower inflation and higher multiples for bank stocks. \u201cBased on the historical regression, if inflation averages 4% for 2023, banks should be trading at an 11x P\/E compared to 8x our adjusted EPS,\u201d he said.<\/p>\n<p>Wells Fargo\u2019s economists currently project inflation will drop to 4% in 2023 and 3% in 2024, according to Mayo.<\/p>\n<p>Aside from inflation, Mayo notes at least three other possible catalysts that could lead to a \u201cre-rating\u201d of bank stocks. Among them, a shift in Federal Reserve policy that leads to lower deposit costs, lower long-term rates that could ultimately help fuel more buybacks and a so-called soft landing for the economy that would cut expected credit costs.<\/p>\n<p>\u00a92023 Bloomberg L.P.<\/p>\n<p>\u00a0<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.investing.com\/news\/stock-market-news\/bank-valuations-price-in-worst-of-all-worlds-says-wells-fargo-analyst-3094154\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Bloomberg) &#8212; Bank stocks are being overly punished by investors in the wake of the regional banking crisis, according to Wells Fargo\u2019s Mike Mayo.\u00a0 Current assumptions factor in the \u201cworst of all worlds\u201d and overlook opportunities in the uncertainty surrounding the sector, the veteran banking analyst wrote in a note to clients. While banks are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16350,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[1],"tags":[83],"class_list":["post-16349","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-uncategorized","tag-featured","post_format-post-format-video"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst | iFintechWorld<\/title>\n<meta name=\"description\" content=\"(Bloomberg) -- Bank stocks are being overly punished by investors in the wake of the regional banking crisis, according to Wells Fargo\u2019s Mike Mayo.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=16349\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"(Bloomberg) -- Bank stocks are being overly punished by investors in the wake of the regional banking crisis, according to Wells Fargo\u2019s Mike Mayo.\u00a0\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=16349\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-31T20:13:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-31T20:13:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/LYNXMPED0A09U_L.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"728\" \/>\n\t<meta property=\"og:image:height\" content=\"486\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=16349#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=16349\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst\",\"datePublished\":\"2023-05-31T20:13:36+00:00\",\"dateModified\":\"2023-05-31T20:13:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=16349\"},\"wordCount\":341,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=16349#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=16349\",\"url\":\"https:\/\/ifintechworld.com\/?p=16349\",\"name\":\"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-05-31T20:13:36+00:00\",\"dateModified\":\"2023-05-31T20:13:37+00:00\",\"description\":\"(Bloomberg) -- Bank stocks are being overly punished by investors in the wake of the regional banking crisis, according to Wells Fargo\u2019s Mike Mayo.\u00a0\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=16349#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=16349\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=16349#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst | iFintechWorld","description":"(Bloomberg) -- Bank stocks are being overly punished by investors in the wake of the regional banking crisis, according to Wells Fargo\u2019s Mike Mayo.\u00a0","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=16349","og_locale":"en_US","og_type":"article","og_title":"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst | iFintechWorld","og_description":"(Bloomberg) -- Bank stocks are being overly punished by investors in the wake of the regional banking crisis, according to Wells Fargo\u2019s Mike Mayo.\u00a0","og_url":"https:\/\/ifintechworld.com\/?p=16349","og_site_name":"iFintechWorld","article_published_time":"2023-05-31T20:13:36+00:00","article_modified_time":"2023-05-31T20:13:37+00:00","og_image":[{"width":728,"height":486,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/LYNXMPED0A09U_L.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=16349#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=16349"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst","datePublished":"2023-05-31T20:13:36+00:00","dateModified":"2023-05-31T20:13:37+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=16349"},"wordCount":341,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=16349#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=16349","url":"https:\/\/ifintechworld.com\/?p=16349","name":"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-05-31T20:13:36+00:00","dateModified":"2023-05-31T20:13:37+00:00","description":"(Bloomberg) -- Bank stocks are being overly punished by investors in the wake of the regional banking crisis, according to Wells Fargo\u2019s Mike Mayo.\u00a0","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=16349#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=16349"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=16349#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Bank Valuations Price In \u2018Worst of All Worlds,\u2019 Says Wells Fargo Analyst"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/16349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16349"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/16349\/revisions"}],"predecessor-version":[{"id":16351,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/16349\/revisions\/16351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/16350"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}