Wednesday, March 31, 2010

Citigroup (NYSE:C), J.P. Morgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) Ready to Explode in Growth says Dick Bove

Banking stocks could rise to 4 times what they are today

According to Rochdale Securities analyst Dick Bove, the shares in companies like Citigroup (NYSE:C), J.P. Morgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) could explode in value as high as 4 times what they are today in the next few years.

This is a little different from a recent report that said Bove asserted the time-frame would be in the next two years.

Bove maintains the banking stocks have the potential to go that high, but covered himself saying, that could change if there "is a breakdown in either the economy or the financial system.”

In other words, this assumes everything goes right with little in the way of economic bumps along the way.

While I agree the banking stocks will eventually rise in a significant way in the future, the current economic situation is still so uncertain, that making these types of predictions, while interesting, and could come about under the best of circumstances, are still more about marketing the names of analysts like Bove than anything based on proven fundamentals of the companies or the economy, as far as the real condition they're all in.

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