Jefferies is encouraging investors to buy U.S. financials in light of recent stress-test successes and fading regulation under the Trump administration.
The firm highlighted Huntington Bancshares, Bank of America, US Bancorp and Keycorp as favorite stock picks.
The Fed’s 2017 Comprehensive Capital Analysis and Review stress-test results were positive, with an average total capital payout ratio of 95 percent and average capital return yield of 7 percent. But Jefferies chief global equity strategist Sean Darby notes additional reasons for optimism.
Source: Investment Cnbc
There are many reasons to love bank stocks now, Jefferies says