Plus, falling interest rates and continued economic growth would be tailwinds.
The aforementioned catalysts are still in place — including interest rate cuts, as investors discovered a day earlier.
Until then, the firm believes bank stocks can outperform into the first-quarter earnings season.
6 regional bank stocks worth buyingThe continued rally in financials will be powered in large part by regional banks, BofA believes.
"We see the capital markets momentum continuing into 2025, which should drive investor interest in both stocks," Poonawala wrote.
Persons:
Financials, Ebrahim Poonawala, Poonawala, BofA, Goldman Sachs, Morgan Stanley, Wells Fargo, Charlie Scharf, Jamie Dimon
Organizations:
of America, Business, Federal Reserve, Investors, Bank of America, First Bancorp, FNB Corp, Truist, US Bancorp, Western Alliance, JPMorgan, Wall, titans
Locations:
financials, Wells Fargo