From Standard & Poor’s Equity Research

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DEUTSCHE BANK CUTS ESTIMATES, TARGET FOR JP MORGAN

Deutsche Bank analyst Mike Mayo says that worsening economic trends should put additional pressure on JPMorgan Chase & Co.’s (JPM) lend portfolios (especially cards, home equity, residential, and commercial pledge) as abundantly being of the class who banking industry in general.

Mayo expects commercial bank lend losses to rise from 1.5% to 3% through the extreme point of 2010, in continuance increased percentage of loans with higher losses, greater consumer leverage and sooner problem recognition by banks.

He cuts 2009 EPS estimate by $0.65 to $2.05, and 2010 by means of $0.35 to $2.20, provident higher loss rates and lower revenue. As a result, he cuts $37 target to $34. He rates JPM hold.

WACHOVIA UPGRADES ALTERA, VIEW ON SEMICONDUCTOR INDUSTRY

Wachovia analyst David Wong says he’s hopeful that a turn in the semiconductor market is only a few months from home.

Wong says inventory levels are likely to rise at the end of fourth quarter 2008, and again at the end of first quarter 2009. But he’session hopeful that recent aggressive action to control record in the electronic serve instead of chain has paved the way for improvement in inventory levels, perhaps starting in the second quarter 2009.

He says year-over-year sales could begin to make productive in second quarter 2009, and show year-over-year growth by October. He raises the sector to overweight from emporium weight and Altera (ALTR) to outperform from mart perform.

MORGAN KEEGAN DOWNGRADES SYNOVUS FINANCIAL

Morgan Keegan analyst Robert Patten says he cuts Synovus Financial (SNV) to market perform from outperform after prudent conduct forecast fourth separate into parts net chargeoffs to skip over to 3.2% of average loans vs. 1.55% in the third quarer, and look forward to fourth quarter provision charges of $350 million vs. $151 a thousand thousand, which was worse than he had expected.

While little details were provided, Patten expects losses to be driven by residential loan portfolio. Also, he expects the commercial real estate portfolio to tend hitherward under increased stress given the impact of the ongoing recession.

He cuts $0.45 2009 EPS estimate to $0.07 loss.

Original text: http://www.businessweek.com/investor/content/jan2009/pi2009015_500851.htm?campaign_id=rss_null