European Banks Trade at Large Discount to Market, U.S. Peers -- Market Talk

Dow Jones2024-12-24

1119 GMT - European banks are more discounted than in the past, RBC Capital Markets says in a research note. The lenders trade at a 46% discount to the European market and at a 41% discount to U.S. banks, analysts write. "We expect the political/economic/regulatory uncertainty to weigh on the sector and its earnings momentum at least in the near term." Their preferred names are Barclays and Deutsche Bank--which are on their Global Financials Best Ideas list--as well as UBS, Julius Baer, BNP Paribas and OSB Group given they are less dependent on net interest income, have a U.S. focus and have tighter cost control. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

December 24, 2024 06:19 ET (11:19 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment