UBS Analyst Says Big Bank Earnings Day Could Be a 'Little Bit of a Mess'

Summary

UBS analyst Erika Najarian previews big US bank earnings, warning the day could be messy with high expectations. She says Goldman Sachs has the highest bar to clear amid crowded positioning, likes Wells Fargo as a cheap under-the-radar pick, and remains skeptical on regional banks due to deposit cost pressures. JPMorgan succession questions also loom large.

• Erika Najarian says mega-cap bank earnings face high hurdles and could disappoint.
• Goldman Sachs has the highest bar to clear because of crowded long positioning.
• Wells Fargo is an overlooked cheap name with potential for a short squeeze.
• Regional banks remain unattractive due to deposit cost challenges if rates stay high.
• JPMorgan succession and key man risk remain a key investor focus.
• The market expects strong capital markets and trading to drive beats.