JPMorgan Chase (JPM), Morgan Stanley (MS), Goldman Sachs (GS), Wells Fargo (WFC) as well as Citigroup (C), Bank of New York Mellon (BK), State Street (STT), Northern Trust (NTRS) are expected to report in-line to better Q1 results, BofA Securities said in a Monday note.
While reluctance to raising fiscal 2026 guidance is expected amid macro uncertainties, Q1 results should be driven by an active trading backdrop, a resilient investment banking environment, a decent set-up for net interest income based on a constructive yield curve, and healthy commercial and industrial loan growth, BofA said.
BofA said it sees earnings call commentaries as far more important as investors try to evaluate downside earnings per share risks. Meanwhile, fewer rate cuts should boost net interest income outlooks, with the forward yield curve having shifted from discounting two cuts in 2026 on Dec. 31 to zero cuts on March 31, BofA added.
BofA upgraded State Street to neutral from underperform, with a $143 price target.
The firm has a buy rating and $362 price target on JPMorgan, buy and $220 price target on Morgan Stanley, buy and $1,100 price target on Goldman Sachs, buy and $107 price target on Wells Fargo, buy and $140 price target on Citigroup, buy and $142 price target on Bank of New York Mellon, and buy and $166 price target on Northern Trust.
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