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.
Read this article and all my other articles for free on Benzinga by clicking here
Want to learn more about the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!