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Analyst Upgrades: Bank of America, JPMorgan, and Wells Fargo

Analysts upwardly revised their ratings and price targets on Bank of America Corp (BAC), JPMorgan Chase & Co. (JPM), and Wells Fargo & Co (WFC)

Dec 13, 2016 at 9:22 AM
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Bernstein weighed in on a number of bank stocks ahead of tomorrow's policy announcement from the Fed, with the central bank largely expected to raise interest rates -- typically a boon for the financial sector. Included in the bunch of financial firms were Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC). Here's a quick roundup of today's bullish brokerage notes on BAC, JPM, and WFC.

  • BAC received a price-target hike to $26 from $22 at Bernstein, representing an expected move into territory the shares haven't seen since 2008. Bank of America Corp shares are up 0.5% in pre-market trading, and could make yet another run at higher highs after tapping an eight-year peak of $23.25 on Monday, before closing a $22.61. The shares are already up 34% in 2016, but with a 14-day Relative Strength Index (RSI) of 75 -- in overbought territory -- the stock could be due for a near-term breather.

  • JPM saw its price target hiked to $92 from $75 at Bernstein. Up more than 28% year-to-date at $84.73, the stock notched an all-time high of $85.79 yesterday. But even after more than a month of post-election rallying for the shares of JPMorgan Chase & Co., the majority of analysts tracking the stock rate it a "hold" or worse. Should the shares extend their run into record-high territory, a continued round of bullish brokerage notes could help boost the bank stock.

  • WFC is set to open 0.3% lower, even after Bernstein raised its price target on the stock to $60 from $54 -- in never-before-seen territory. Technically, Wells Fargo & Co is up 2.6% year-to-date at $55.78, and is fresh off a Dec. 8 annual high of $58.02. It seems options traders have been betting on even more gains in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WFC's 10-day call/put volume ratio of 1.61 ranks higher than 82% of all readings from the past 12 months, indicating calls have been bought to open over puts at a faster-than-usual clip. 
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