TopGun^® Press

Brendan Wood International Investor Conviction Intel – Banks & Financials

November 17th, 2023 by TopGun Press

Below are some of the most topical Banks & Financials stocks in the BWI Shareholder Confidence Index based on our daily chats with global investors. Below you will also find a link to Investor Intelligence excerpts on PNC Financial Services.

Morgan Stanley: Investors are keeping an eye on Morgan Stanley’s CEO transition with Ted Pick, current Co-President, taking over the reigns from James Gorman effective January 2024. Investors rate current CEO, James Gorman, as one of the highest among US Bank CEOs, second to Jamie Dimon at JP Morgan. Investors praise Gorman for having done an ‘incredible job’ and ‘making the right calls’. Investors rate Morgan Stanley’s Bench in the first quartile, however, even in the case of internal promotion, investors will undoubtedly be looking to hear the vision and strategy of the company under new leadership.

PNC Financial Services: Although Ownership Commitment levels dropped more sharply in 3Q for the large US Banks, Ownership Commitment levels for the Regional Banks still remained under pressure in 3Q. According to investors, with significantly lower valuations following the Regional Bank crisis, they are now starting to consider revisiting the space. Among the Regional Banks, US Bancorp edges out PNC on BWI’s overall Investment Quality Index, however, Investors rate their confidence in PNC higher on key competitive metrics such as: Confidence in Strategy, Long Term Growth and Management. Investors also rate their confidence in PNC’s Price Appreciation Potential higher than it’s peer group and sector averages. (CLICK HERE FOR THE INVESTOR INTELLIGENCE EXCERPTS ON PNC FINANCIAL SERVICES)

Bank of Montreal: Ownership commitment levels for the Bank of Montreal are above its Canadian peer group average. According to investors, BMO is one of the stronger banks in terms of Price Appreciation Potential. Investors credit BMO’s Bank of the West acquisition in aiding BMO’s Long Term Growth Potential. There is more confidence around BMO’s acquisition than TD’s Cowen deal, so say investors. However, investors are more cautious about BMO’s Short Term Growth Potential because there are nearer term risks with the deal and the US banking market, the credit market and regulatory capital requirements. Investors rate BMO’s Long Term Growth Potential in the second quartile, in-line with their peers but rate their Short Term Growth Potential in the third quartile, below their peers.

Largest Changes Investor Confidence in Price Appreciation (3Q2023 vs. 2Q 2023):

Block Inc: 17pts
US Bancorp: 14pts
Comerica Incorporated: 8pts
Bank of America Corporation: 8pts

Blackstone Inc: -37pts
KKR & Co. Inc.: -24pts
Morgan Stanley: -13pts
Wells Fargo & Co.: -10pts

*Scoring Range = 0 to 100.

Click here for the Investor Conviction Intel for Industrials November 2023

Click here for the Investor Conviction Intel for Pipelines & Utilities October 2023

Brendan Wood International (BWI) serves a dual clientele of world leading investors and their corporate investment targets as well as broker dealers who provide research, sales and trading services to the investment community. Big cap companies looking for comprehensive investor confidence data on their organizations are likely to discover that Brendan Wood partners consult with their investors non stop year round. Investors depend on BWI to quantify the demand side of the investment industry across 1400 names worldwide, including the name by name research sales and trading professionals who influence investor demand.

About Brendan Wood International:

Brendan Wood International (BWI), formed in 1970, is a private advisory group which originates performance investigation programs in the capital markets. Brendan Wood Partners debrief large institutional investors worldwide on a daily basis. There are 2000+ live consultations with professionals overseeing +/- $55 trillion invested in the +/- 1400 big cap companies on the BWI Index. Relying on its real time performance intelligence, BWI advises public companies, institutional and activist investors, investment banks and broker dealers on strategy, performance and recruitment of TopGun talent. The firm’s partners have formally presented at 1000+ C level strategy meetings and corporate off-sites in fifty cities. Brendan Wood founded the exclusive TopGun Club, a performance based institution.

Disclaimer:

We wish to emphasize that all reports, evaluations and assessments contained herein, represent Brendan Wood International’s subjective judgment and opinions, based on our years of experience and on information obtained by us in the course of our research. Much of the factual information contained in the reports has been obtained by us from third parties on whose responses we have relied in good faith, independent verification by Brendan Wood International being, under the circumstances, impossible. While we believe that you will find our reports to be an invaluable tool in formulating your own strategies and judgments, the foregoing should be borne in mind. This report is not meant as investment advice and should not be interpreted as advising on the value of a company’s securities, the advisability of investing in, purchasing or selling any company’s securities or any other conclusion relating to investment/divestiture of a company’s securities. Finally, this report is not intended as an offer or solicitation for the purchase or sale of any company’s securities.