Dick Bove has been a merchant of doom lately when it comes to the banks.
In a new note out today, he slashes his price target from $37.50 to $28 (the stock is at $22 now).
Here are the key details:
- 2011 EPS cut to $2.96 from $3.38.
- 2012 EPS was reduced to $3.39 from $3.83.
He lists four big reasons why:
- The economy is slowing to a rate that could be below 2%.
- Inflation is getting worse, and it could take 12-18 months to see a decline.
- Regulators are back turning their “fury” to the banks.
- Finally, the company is making serious attempts at a reorg that will be costly now, but will pay off later.
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