NEW YORK ( TheStreet) -- Citigroup (C), Fifth Third Bancorp (FITB) and KeyCorp (KEY) are the top three bank picks from Deutsche Bank analyst Matt O'Connor as banks prepare to report second quarter earnings next month.
"Bank stocks could rally into earnings before stalling the rest of the summer given concerns over the macro picture and net interest margin pressure," O'Connor writes in a report published Friday. However, he believes bank stocks will finish above current prices by year-end, due to "hopefully improving capital markets, more political certainty, and hopefully less of an impact from Europe." Here are more details on his top three picks for the quarter.
O'Connor argues Citigroup shares will face a "good test" when the bank reports second quarter earnings, "as the macro environment was sluggish, but not nearly as bad as in
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV