Staite wrote that his "top picks" in the banking sector remain PNC Financial Services Group (PNC) of Pittsburgh and JPMorgan Chase (JPM). He considers PNC another low-risk interest-rate play, and also cited the company's strong performance in the stress tests.
For JPMorgan Chase, Staite cited a low valuation, the company's strong franchise and the possibility of a turnaround in trading revenue.
PNC's shares closed at $86.87 Friday and traded for 11.6 times the consensus 2015 EPS estimate of $7.52. The consensus 2014 EPS estimate is $7.00. Staite on Monday raised his price target for the shares to $100 from $92.00.
JPM closed at $60.17 Friday and traded for 9.5 times the consensus 2015 EPS estimate of $6.35. The consensus 2014 EPS estimate is $4.90. Staite's price target for the shares was raised on Monday to $68 from $66.00.
Shares of Bank of America were down 1.3% in midday trading to $17.32, while U.S. Bancorp was up 0.6% to $43.27 and Wells Fargo was down 0.4% to $48.95.
PNC's shares were down 0.3% to $86.65 and JPMorgan was up 0.8% to $60.63.