There's a 'disconnect' with bank stocks and they should climb higher, top analyst says

Still, Mayo said the stocks have further to go. He cited last week's jobs report, which saw the economy addinstead of shedding more like many expected, and increasing consumer loans as reasons to be bullish, among other data points. The early signs of a possible economic recovery make it less likely that the banks will face a serious crisis of their own, Mayo said.

"There's less chance of that extreme tail risk, and at the same time anyway banks are resilient and are able to absorb the body and still grow book value and still support the economy," he said. Wells Fargo increased its price targets on all the banks it covers last week, with Mayo telling CNBC that larger banks were in aOn Monday, he said the economic restrictions and stay-at-home orders implemented to slow the spread of the coronavirus have forced customers to use digital banking tools, which is an advantage for larger banks that have been able to invest heavily in that area.

"Retail customers have been jolted out of the bank branches and forced to use digital banking ... that's going exactly where banks' strategic plans have been going. So in the last two months, you've accelerated the digital acceleration of the banks by two to five years," he said. In a note released Monday, Mayo wrote that investor feedback to Wells Fargo since last week's call to raise price targets indicated a willingness by clients to take larger positions in bank stocks.

They are at full valuation for the most part at 1.6-1.9X book value. Loan loss reserves are rising, corporate defaults are increasing and the stress tests due out later this month put many dividends at risk. And oh wait, there’s COVID - which is blooming in states that reopened

Key graph in story, a.k.a “burying the lede: “In a note released Monday, Mayo wrote that investor feedback to Wells Fargo since last week’s call to raise price targets indicated a willingness by clients to take larger positions in bank stocks.”

First Housing , now it's auto loans ! What next ?

that's crap. their barely suriving even with all the Fed. stimulus money.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

'Multiple Positive Milestones' to Boost Media Stocks, Analyst SaysGuggenheim Securities analyst Michael Morris said that media stocks are set to outperform in the coming weeks, citing 'multiple positive milestones,' including the return of live sports and 'improving advertiser sentiment.' Details:
Source: THR - 🏆 411. / 53 Read more »

Mid-tier airlines' stock is a good investment, analyst says - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Stocks continue to climb on recovery optimism — Cramer and four others on what's nextStocks continued their climb on Monday on optimism over a recovering economy. Here are five experts on what's behind the rally. TradingNation
Source: CNBC - 🏆 12. / 72 Read more »

Investors’ Love of Tech Drives Booming Market RallyIndividual investors are pouring money into popular technology stocks, contributing to a booming rally that is leading major indexes higher even as economic uncertainty related to the coronavirus lingers. It's the top 5 stocks that are crushing it Maybe because all of this BS is just that, BS. THE MORE EARNINGS CRATER THE MORE MULTIPLES EXPAND
Source: WSJ - 🏆 98. / 63 Read more »