On JPMorgan, the analysts argue shares will climb as the firm releases capital it had set aside to protect against investor put-backs on so-called private label mortgage-backed securities, a term that refers to MBS that wasn't guaranteed by housing giants Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB). As for Citigroup, Goldman's analysts cite an "attractive valuation" and "exposure to growth markets."
Goldman's analysts downplayed weak performance from large-cap banks in the fourth quarter, chalking it up to "seasonality," as trading tends to be slower in the fourth quarter.
"We still believe that capital returns, clarity over regulation and continued growth in book values should support large cap banks in 2011," the report states.Shares of JPMorgan were up 1.57% in early trading, with Citigroup shares higher by 0.62%. Shares of most other large-cap banks, including Wells Fargo (WFC), Bank of America (BAC), PNC Financial (PNC)and U.S. Bancorp (USB)were also higher in early trading. -- Written by Dan Freed in New York.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV