) to hold from buy.
Analyst Diane Glossman says second quarter earnings per share were boosted by a number of non-recurring items. She says EPS was closer to $0.95-$0.98 on a core basis. Glossman sees potential downside to consensus estimates based on expected revenue pressures.
She cut the $4.52 2002 EPS estimate to $4.23, and cut the $4.95 2003 estimate to $4.40 on assumed higher expenses related to regulatory initiatives, weaker market-related fee income, and lower earning assets.
Glossman believes concerns about a new regulatory oversight may not be fully priced into the stock, and could continue to weigh on shares. She cut her $64 target to $44.