Here's Why Oppenheimer is Bullish on Banks

Oppenheimer analyst Chris Kotowski is bullish on banking stocks, raising the price target on three names in the sector in a note released Monday. Bank of America's (BAC) - Get Report price target was raised to $25 from $19, Citigroup's (C) - Get Report to $72 from $65 and Goldman Sachs (GS) - Get Report shares now have a $252 price target vs. a previous $228 per share view. The credit scare in January and February that depressed stocks created a buying opportunity in banks, according to Kotowski. Snce the bottom on February 10 to election day on November 8, the sector was up 33%, topping the S&P by 12%. Since Election day, banking stocks are up another 12%, raising their price to earnings ration to 77% from 60%. Kotowksi believes that 2017-2018 could be the Goldilocks years for the sector because credit costs are likely to remain low, expenes have been tamped down and revenues look ready to rise.