With recession fears mounting and inflation at record highs, it is difficult to make investment decisions. The TipRanks expert hub, in such a scenario, brings you the opinions and trading histories of the world’s top financial experts. This can be followed by investors to make profitable investment decisions.
In our “Expert Spotlight” article today, we bring you two picks from the recommendations of five-star analyst Susan Roth Katzke, who has extensive experience covering the banking industry.
Susan Roth Katzke is Managing Director of Credit Suisse and focuses on multinational banks and brokerages. Roth Katzke has been in the market for almost four decades with previous notable stints at Bear Stearns and Intervest Bancshares Corporation. His academic credentials also stand out. Roth Katzke holds a Bachelor of Science in Economics, Accounting and Finance from The Wharton School. Additionally, she also holds an MBA in General Management from the prestigious Harvard Business School.
How does Susan Roth Katzke rank among TipRanks analysts?
According to the TipRanks Star Ranking System, Susan Roth Katzke ranks 112th out of 7,918 analysts in the TipRanks universe and 151st out of 20,759 total experts, including hedge fund managers, Wall Street analysts, corporate insiders, financial bloggers and individual investors.
Roth Katzke has a success rate of 68% and an average return per note of 19.3%.
Average analyst returns relative to the S&P 500 and the benchmark sector are 6.8% and 3.7%, respectively.
As evident from the majority of his recommendations, Roth Katzke is very optimistic about the financial sector. Notably, 53.7% of its recommendations are buys, while 41.6% have a hold rating and 4.7% have a sell rating.
Notably, according to TipRanks, Roth Katzke’s most profitable pick was Morgan Stanley from May 6, 2020 to May 6, 2021, yielding an impressive return of 138.3%. Interestingly, the title continues to remain one of his top picks.
JPMorgan Chase & Co. (New York Stock Exchange: JPM)
Based in New York, global banking giant JPMorgan is one of the biggest names in the financial services industry. The bank provides various investment banking and financial services, including asset management, insurance and private equity, in addition to its core banking services.
Currently, the company has a market capitalization of $331.74 billion.
The company also has an attractive dividend yield of 3.61%, which is well above the industry average of 2.11%.
However, the company’s recent second-quarter results were disappointing, with revenue and profit falling short of estimates.
Roth Katzke remains optimistic and reiterated a buy rating. The analyst, however, lowered the price target from $160 to $145, implying a potential upside of 28.4% from current levels. Meanwhile, the analyst enjoys a hit rate of 73% and an average profit of 18.1% on the stock.
Overall, the Wall Street community is cautiously bullish on the stock with a Moderate Buy consensus rating based on 11 buys, six holds and two sells. JPM’s average price target of $140.21 implies the stock has 24.1% upside potential from current levels. Stocks are down 20.9% over the past year.
Morgan Stanley (NYSE: MS)
Founded in 1935, Morgan Stanley is another New York-based financial services giant. The bank’s main services include investment banking, wealth management and brokerage.
The company’s current market cap is $136.53 billion.
Notably, Morgan Stanley’s dividend yield of 3.75% is above the industry average of 2.11%.
However, like its counterpart JPMorgan, Morgan Stanley’s latest second-quarter results were disappointing, with revenue and earnings falling short of expectations.
Roth Katzke is however positive on the title. The analyst reiterated a buy rating on the stock with a price target of $95, implying upside potential of 21.7% from current levels. Roth Katzke boasts a 77% win rate and a 38.6% average profit on the stock.
Overall, the Wall Street community is cautiously bullish on the stock with a Moderate Buy consensus rating based on 13 buys and five holds. The MS mid-price target of $92.41 implies the stock has 18.4% upside potential from current levels. The shares are down 10% over the past year.
Key points to remember
With inflation showing no signs of abating, interest rates are expected to remain high for the foreseeable future. In such a situation, the banks should continue to benefit. Given Susan Roth Katzke’s outstanding track record and experience covering the banking industry for many decades, her picks can be seriously considered by investors as viable investment choices.
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