Market Overview

CLSA Analyst Sees Bank Stocks Gaining 50% Over Next 3 Years

Share:
Related BAC
Warren Buffett Pushing More Cash To Equities; 'Big 5' Stocks Still At The Top
Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolio
U.S. Supreme Court Allows Sports Betting: Now What For Investors? (Seeking Alpha)
Related C
Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolio
JPMorgan, HSBC, Citigroup, Early Warning Execs Talk Fintech Collaboration
Supreme Court okays sports gambling, but will credit cards allow it? (Seeking Alpha)

Bank stocks are expected to gain 50 percent over the next three years, at least according to CLSA's bank analyst Mike Mayo.

Speaking as a guest on CNBC, the analyst doesn't believe bank stocks have moved ahead of themselves in the recent stock market surge.

Mayo justified his bullish stance by highlighting President-elect Donald Trump's economic policies, which will support jobs and GDP growth. He added that a vital component of accelerating jobs and GDP growth is counting banks as a key partner.

Mayo said Trump's administration is expected to help banks in the regulatory environment, not necessarily be removing regulations by stop piling on new ones.

"The most important point - even if you don't get a 'Trump-bump' to the banks, and we think a 'Trump-bump' can add 20 percent to bank earnings, even without that we still think that banks create value for the first time in a decade," Mayo said. "Banks in the U.S. earn their cost of capital and that is what the market is collectively missing."

Here are Mayo's stock ratings and price targets:

  • Bank of America Corp (NYSE: BAC) - Outperform rating, $27 price target.
  • Wells Fargo & Co (NYSE: WFC) - Outperform rating, $64 price target.
  • Goldman Sachs Group Inc (NYSE: GS) - Outperform rating, $275 price target.
  • Morgan Stanley (NYSE: MS) - Buy rating, $54 price target.
  • Citigroup Inc (NYSE: C) - Buy rating, $80 price target.
  • JPMorgan Chase & Co. (NYSE: JPM) - Buy rating, $102 price target.

Latest Ratings for BAC

DateFirmActionFromTo
Apr 2018CitigroupMaintainsNeutralNeutral
Apr 2018BarclaysMaintainsEqual-WeightEqual-Weight
Mar 2018Credit SuisseMaintainsOutperformOutperform

View More Analyst Ratings for BAC
View the Latest Analyst Ratings

Posted-In: bank stocks CLSA CNBCAnalyst Color Long Ideas Analyst Ratings Media Trading Ideas

 

Related Articles (BAC + C)

View Comments and Join the Discussion!