European Banks Are Cheap So Investors Should Pile In, Citi Says
This article is for subscribers only.
Investors should ignore the uncertainty in European banking in the coming days and weeks and just snap up the shares, according to Citigroup Inc.’s strategist Jonathan Stubbs, who’s been bullish on the industry since early September.
The gap between bank stocks and credit has widened aggressively, which along with “rock-bottom” price-to-book valuations is a strong signal to buy, Stubbs said in note to investors. In Citigroup’s base case of a continuing economic cycle and higher interest rates in the region, European banks have significant upside along with equities in the next six to 12 months.