10 Super Regional Banks To Watch Before The Fed Stress Test

In a recent report, analysts at Deutsche Bank gave an updated outlook for super regional bank stocks. With the Federal Reserve Stress Test results due out on March 5 and the Comprehensive Capital Analysts and Review (CCAR) results set to be released on March 11, many investors may be looking to take a position in some of these banks in upcoming days.

Here is Deutsche Bank’s take on 10 big names.

1. Citizens Financial Group Inc CFG 0.44%, Buy

Analysts like the company’s excess capital, above-average leverage to rising interest rates and attractive valuation.

2. Fifth Third Bancorp FITB 0.21%, Hold

Analysts see mounting expense pressure, limited earnings growth potential and disappointing results for Fifth Third.

3. Huntington Bancshares Inc HBAN 0.09%, Hold

Analysts believe that earnings per share(EPS) growth will be hard to come by in 2015.

4. KeyCorp KEY 0.28%, Buy

Analysts praise the company’s leverage to higher interest rates, improving operational efficiency and attractive valuation.

5. M&T Bank Corp MTB 0.41%, Buy

Analysts predict that the closing of the Hudson City Bancorp HCBK 0.21% deal will provide a positive catalyst for the stock.

6. The PNC Financial Services Group PNC 0.12%, Hold

Analysts believe that the company’s limited credit leverage is already reflected in the share price.

7. Regions Financial Corp RF, Buy

Analysts feel that the recent sell-off in the stock was overdone.

8. SunTrust Banks Inc STI 0.31%, Buy

Analysts see upside to EPS as the US Southeast continues its recovery.

9. US Bancorp USB 0.2%, Hold

Analysts see the company as a defensive play at this point.

10. Wells Fargo Corp WFC 0.33%, Hold

Analysts believe Wells Fargo is solid, but has less upside than other names.

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