From The Street of Dreams

Avatar photo Doug Kass on October 5, 2026

Bank of America lowers financials…

KKR – BofA lowered the firm’s price target on $KKR to $138 from $143 and keeps a Buy rating on the shares. The firm is adjusting its estimates and price targets for alternative and traditional asset managers ahead of Q3 earnings from the group.

$BX – BofA analyst Craig Siegenthaler lowered the firm’s price target on Blackstone to $122 from $138 and keeps a Buy rating on the shares. The firm is adjusting its estimates and price targets for alternative and traditional asset managers ahead of Q3 earnings from the group.

$APO – BofA analyst Craig Siegenthaler lowered the firm’s price target on Apollo Global to $161 from $163 and keeps a Buy rating on the shares. The firm is adjusting its estimates and price targets for alternative and traditional asset managers ahead of Q3 earnings from the group.

$WFC – Goldman Sachs lowered the firm’s price target on Wells Fargo to $96 from $107 and keeps a Buy rating on the shares. Large-cap banks enter Q3 earnings with solid revenue and credit fundamentals but more normalized capital-markets activity, continued NII support from loan growth and fixed-rate repricing offset by higher deposit costs, and moderating capital returns, the analyst tells investors in a research note.

$C – BofA analyst Ebrahim Poonawala lowered the firm’s price target on Citi to $160 from $176 and keeps a Buy rating on the shares. The firm revised its Q3 EPS estimates for the GSIB banks up by 0.8% on average, and reduced its price targets for the group down by about 8% on average, citing lower multiples.

$GS BofA lowered the firm’s price target on Goldman Sachs to $1,050 from $1,300 and keeps a Buy rating on the shares. The firm revised its Q3 EPS estimates for the GSIB banks up by 0.8% on average, and reduced its price targets for the group down by about 8% on average, citing lower multiples.

$WFC – Morgan Stanley upgraded Wells Fargo to Overweight from Equal Weight with an unchanged price target of $102. Morgan Stanley also moved Wells to Top Pick. The firm believes 2026 has been a transition year, with Wells rebuilding its “growth engine ahead of the full benefit to earnings and returns.” The bank’s earnings profile will improve in 2027 with less margin dilution, more revenue from existing client relationships, and continued operating leverage, the analyst tells investors in a research note. Morgan Stanley views Wells shares as undervalued and sees a path to 17% to return on tangible common equity in the second half of 2027 and 18% in 2028

Positions: Short APO VS KKR VS BX VS