Downgrades: FITB, STI, USB Monday, October 26, 1:08 PM ET
Last week, Dick Bove sent ripples through the markets when he downgraded shares of Wells Fargo to Sell, despite the companies strong earnings report from earlier in the day. This week, Bove singled out regional banks as those that are unlikely to show a profit until 2011. With the warning to investors, he downgraded shares of Fifth Third Bancorp (NASDAQ:FITB) and SunTrust (NYSE:STI) from Neutral to Sell and also downgraded shares of US Bancorp (NYSE:USB) from Buy to Neutral.
In morning trading, all three banks were trading in the red, with Fifth Third showing the worst losses on the day, off more than six percent so far.
And Citigroup downgraded shares of London's HSBC Holdings (NYSE:HBC) from Buy to Hold. Analysts at Citi believe earnings will continue to come in below peers, despite the bank's strong global presence.
Shares of HSBC ended the day lower in London, off by a little more than one percent, and are currently trading down by a similar amount in New York despite the strong start to the day.
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