Bank stocks are being overly punished by investors in the wake of the regional banking crisis, according to Wells Fargo’s Mike Mayo.
Current assumptions factor in the “worst of all worlds” and overlook opportunities in the uncertainty surrounding the sector, the veteran banking analyst wrote in a note to clients. While banks are facing increased regulation, lower rates and a potential recession, some lenders are in a “zone of attractiveness” that could see their multiples increase by a third, Mayo said.
Read More : Wells Fargo Analyst Believes Bank Valuations Account for the Bleakest Scenario