Moody's warning this week about the credit worthiness of more than two dozen banks has created a buy-the-dip opportunity in shares of regional lenders, according to JPMorgan.
The credit rating agency downgraded the ratings of 10 regional banks on Monday evening, and signaled concern for about 17 more.
But JPMorgan analyst Steven Alexopoulos said in a note to clients on Wednesday that those concerns are already priced in to bank stocks, and regional bank stocks now have upside from current levels.
That means that many bank stocks look cheaper today than before the downgrades, Alexoloulos said.
JPMorgan's top picks among regional banks include New York Community Bancorp.
Persons:
Steven Alexopoulos, Moody's, Alexoloulos, JPMorgan's, — CNBC's Michael Bloom
Organizations:
JPMorgan, Silicon Valley Bank, First, Pinnacle Financial, Pinnacle, Regional Banking, New York Community Bancorp, Western Alliance
Locations:
Silicon, New