BofA trades around 9.25 with a 52-wk range of 4.92 to 10.10 and with a consensus analyst target of 9.45. Its 30 June balance sheet represented tangible book value of 13.22 and a stated book value of 20.16 per share

Earnnings Preview JPM, KEY, PNC, BLK, BRK-B, USB, WFC, BRK-A. BAC, C

JPM, KEY, PNC, BLK, BRK-B, USB, WFC, BRK-A. BAC, C
The big banks will be important to watch this Q-3 earnings season, as shares have risen nicely off of their lows.
Banks almost never offer guidance during their earnings, but investors often pay attention to book values reported by each bank. It used to be that book value was a floor, but for some of the large banks and even for some of the safest banks the book value yardstick now acts as a ceiling.
The reason is because the future earnings power of the banking sector is deemed to be so low in the current interest rate and regulatory environment.
LTN took look at each of the largest banks banks in America to see how the investment community sees each one with consensus price targets.
JP Morgan Chase & Co. (NYSE:JPM) remains a Key safe bank in America whether the trading losses crept up or not. Those trading losses highlight more risk and that puts the book value at an implied ceiling now rather than a floor. This Quarter will show the final cost for the losses, but the bank has a fortress balance sheet with some $2.3-T in assets. It is important to know that at 41.50 against a 52-wk trading range of 28.28 to 46.49, shares are now back to worth more than when those giant losses were made public. This bank had a book value of 48.40 per share as of 30 June.
KeyCorp (NYSE:KEY) With operations in 14 states it is headquartered in Cleveland, OH. The current share price of 8.75 generates a market cap of more than $8.2-B and the share price is against a 52-wk range of 6.21 to 9.12. KeyCorp’s book value was listed as 10.37 per share as of 30 June.



PNC Financial Services (NYSE:PNC) is HQ’d in Pittsburgh and has almost $300-B in assets, with more than 2,500 branches and almost 7,000 ATMs in 14 states. It has a market cap of $34-B based upon a share price of 64.35. Analysts have a consensus price target of $about 71.80 here and the 52-wk trading has been 48.80 to 67.89. PNC owns almost 25% of asset management firm BlackRock Inc. (NYSE:BLK) and its 30 June book value was listed as 64.00 per common share.
U.S. Bancorp (NYSE:USB) is a Super-regional bank HQ’d located in Minneapolis. It is actually the 5th largest commercial bank in the US and caters to millions of consumers. It has more than $340-B in assets, more than 3,000 branch locations, more than 5,000 ATMs and its operations spread out over 25 states in America. With its shares at 34.75, its market value is almost $66-B and its 52-wk trading range is 23.54 to 35.46. The bank’s book value was listed as 17.45 per share as of June 30. Berkshire Hathaway Inc. (NYSE: BRK-B) owns some 66-M shares worth close to $2.3-B.
Wells Fargo & Company (NYSE:WFC) is the safest bank in America. Wells Fargo shares is worth almost $190-B and shares are now nearly at 36.00 against a 52-wk trading range of 23.19 to $6.60. Wells Fargo trades at an even larger premium to its book value of 26.06, but Wall Street analysts have a consensus price target of almost $39.00. Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-A) keeps buying more and more shares here and the Berkshire stake is now known to be worth close to $14.2-B.
Bank of America Corporation (NYSE:BAC) and Citigroup Inc. (NYSE:C). Book value, or even tangible book value, represents a ceiling for now in these banks as they cannot pay higher dividends and are still under Treasury supervision more than the other money-center banks.
The Key levels to watch are as follows:
BofA trades around 9.25 with a 52-wk range of 4.92 to 10.10 and with a consensus analyst target of 9.45. Its 30 June balance sheet represented tangible book value of 13.22 and a stated book value of 20.16 per share.
Citi trades around 34.70 with a 52-wk range of$23.30 to 38.40 with a consensus analyst target of 40.20. Its 30 June balance sheet showed a tangible book value 51.81 and a stated book value of 62.61 per share.