JPMorgan analyst Steven Alexopoulos has identified seven bank stocks poised for significant growth in the current market landscape. He’s referred to these picks as “our ‘Magnificent Seven'”.
JPMorgan’s Magnificent Seven Bank Stock Picks
Alexopoulos’ picks from among mid- and small-cap banks, and his views (summarized) on them are as follows:
First Citizens BancShares Inc (Delaware) Class A (NASDAQ:FCNCA): Despite a challenging VC environment in 1Q24, First Citizens’ acquisition of SVB has stabilized deposit balances and increased new deposits, indicating potential growth in the future. The bank’s asset-sensitive balance sheet could benefit from potential Fed rate cuts, leading to strong net interest income growth.
Western Alliance Bancorporation (NYSE:WAL): Western Alliance achieved key financial targets in 1Q24, setting the stage for continued growth, particularly driven by its national businesses outperforming peers. With shares trading at an elevated implied cost of equity, there is significant upside potential for shareholders.
Live Oak Bancshares Inc (NYSE:LOB): Delayed Fed rate cuts have postponed the benefit to Live Oak’s liability-sensitive balance sheet, but the bank’s long-term growth story remains intact. LOB is well-positioned for growth with strong loan originations and a favorable valuation.
Pinnacle Financial Partners Inc (NASDAQ:PNFP): Pinnacle stands out among regional ...Full story available on Benzinga.com
Related tickers: FCNCA, PNFP, CFR, WAL, WBS, MVBF, LOB.
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