Barclays says bank stock rally can continue as it ups Goldman and Morgan Stanley
Analysts at Barclays said a recent bank stock rally
BKX,
could have legs, driven both by a rebound in EPS and continued tangible book value growth, as well as multiple expansion. Lower loan loss provisions should be the bigger driver in earnings, even as uncertainties over rising COVID-19 cases and heightened restrictions present risks. It upgraded Goldman Sachs
GS,
Morgan Stanley
MS,
and Ally Financial
ALLY,
to overweight from equal-weight, while lowering Citi
C,
Zions Bancorp
ZION,
and SVB Financial
SIVB,
to equal weight from overweight.
