KBW's Universal Banks Update (BAC, C, GS, JPM, MS)

J.P. Morgan published its 2011 Universal Banks Outlook today with price targets, and risks to achieving price targets, on the following companies: Bank of America Corp. BAC Target Price: 14.00 Risk Factors: The economy is our chief risk as BAC's consumer laden book is affected by the unemployment rate. BAC has largely addressed its capital needs, but regulatory risks still exist for BAC. Also, the MER integration in still unfolding and remains a risk to BAC shareholders in our opinion. Finally, financial regulation continues to evolve, which could significantly alter our forward estimates and resulting price target. Citigroup C Target Price: 5.00 Risk Factors: Our target price could be negatively impacted by credit quality challenges, key loss of personnel, poor capital markets performance, and macro-related events that negatively impact markets' liquidity. In addition, significant government ownership and the potential for a valuation allowance on its large deferred tax asset are added risks, in our view. Goldman Sachs Group, Inc. GS Target Price: 198.00 Risk Factors: Goldman Sachs' revenues and earnings are highly sensitive to the health of the global economy and the global capital markets. Revenues and earnings can be highly volatile from period to period and depend upon a variety of factors including asset values, trading activity, capital markets volatility, the level of securities issuance, and demand from retail and institutional investors to invest in securities of different types. JPMorgan Chase & Co JPM Target Price: 57.00 Risk Factors: Our target price could be negatively impacted by credit quality challenges, poor capital markets performance, and macro-related events that negatively impact markets' liquidity. Morgan Stanley MS Target Price: 31.00 Risk Factors: Risks to our established price target may include general decline in the overall value of the major indices, the reluctance on the part of retail investors to invest in stocks and bonds, and a decline in the overall level of equity and fixed income underwriting as well as mergers and acquisitions.