Morgan Stanley Upgrades European Banks With Sector at 2008 High
Morgan Stanley analysts upgraded their view on European banks to attractive, saying that the sector has more upside even after rallying to a 17-year high.
'With risks to European growth receding, we gain conviction that yield steepening will hold and net interest income growth will resume in 2026,' analysts led by Alvaro Serrano wrote in a note. Despite the sector's rally, banks only trade at nine times earnings — a 41% discount to the broader market — leaving 'further room to re-rate,' they said.
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