11:37 AM EDT, 10/06/2025 (MT Newswires) -- Large US banks, particularly Citigroup ( C ) , are expected to post Q3 results that will meet or exceed expectations, driven by stronger investment banking and trading revenue, BofA Securities said in a note Monday.

The firm said investor focus will likely center on net interest income outlooks amid expected rate cuts, use of excess capital, commentary on merger and acquisition and initial public offering activity, and bank lending to private credit.

Citigroup ( C ) remains BofA's top pick among global systemically important banks, offering the most attractive risk/reward profile, while Bank of New York Mellon ( BK ) is its top pick among trust banks due to its defensiveness against credit weakness.

BofA said it expects capital markets-driven earnings beats for money center and Wall Street banks, though such strength is already reflected in investor expectations and may not significantly drive share performance.

The analysts raised Citigroup's ( C ) Q3 EPS estimate to $1.91, slightly above the prior forecast and $1.88 consensus, and increased the price objective to $115 from $107. JPMorgan Chase's ( JPM ) EPS estimate was revised to $4.92, with the price objective lifted to $350 from $340.

Morgan Stanley's ( MS ) EPS forecast was raised to $2.19, with the price target increased to $170 from $154, while Goldman Sachs' ( GS ) estimate was lifted to $10.77 and its target to $850 from $782.

For Bank of New York Mellon ( BK ), the EPS estimate was trimmed to $1.78, while the price target was raised to $118 from $106, the analysts said.

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