Horowitz initiated coverage of Huntington Bancshares Inc. and Zions Bancorp with buy ratings after their shares tumbled by more than 25% this year, pulled down by concerns about the finances of regional lenders following the collapse of Silicon Valley Bank and Signature Bank.
“Now is the opportune time to buy regional banks,” he wrote in a note. “We remain constructive on the sector given our view that the best time to buy bank stocks is the transition from late-cycle to early-cycle when we believe credit will fare better than market concerns.” Bank stocks were pummeled earlier this year amid concerns the industry was falling into a crisis. But they largely failed to recover as those concerns faded and the broader market rallied. That’s left the KBW Bank Index down about 22% this year, a sharp contrast to the 13% gain for the S&P 500 Index.
And while Horowitz gave buy ratings to Zions and Huntington, which have underperformed the broader sector this year, he doled out neutral recommendations on First Citizens BancShares Inc. and New York Community Bancorp Inc.