Calling U.S. banks a leveraged play on interest rates supported by declining spreads on investment grade debt, Credit Suisse Group (NYSE: CS) today upgraded its view of U.S. banks. The bank’s analysts believe that U.S. banks will see better returns as asset quality rises and as banks make more loans.
According to a report at MarketWatch, Credit Suisse rates Wells Fargo & Co. (NYSE: WFC) as Neutral and gives J.P. Morgan Chase & Co. (NYSE: JPM) and Huntington Bancshares Inc. (NASDAQ: HBAN) Outperform ratings.
Credit Suisse says U.S. banks will “surprise to the upside.” Compared to European banks, U.S. banks are fully deleveraged, another point in the banks’ favor. The U.S. economy is expected outperform Europe in the near term and corporate balance sheets have improved. Credit Suisse also notes that U.S. leading economic indicators are getting better.
Of the U.S. banks Credit Suisse names, J.P. Morgan and Wells Fargo are active in premarket trading this morning. Wells Fargo’s shares are up about 0.5% at $34.85 in a 52-week range of $22.61 to $36.60. Shares of J.P. Morgan are trading down 0.4% at $40.80 in a 52-week range of $27.85 to $46.49.
Paul Ausick
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
