Barclays says bank stock rally can continue as it ups Goldman and Morgan Stanley

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Analysts at Barclays said a recent bank stock rally could have legs, driven both by a rebound in EPS and continued tangible book value growth, as well as multiple expansion. Lower loan loss provisions should be the bigger driver in earnings, even as uncertainties over rising COVID-19 cases and heightened restrictions present risks. It upgraded Goldman Sachs , Morgan Stanley and Ally Financial to overweight from equal-weight, while lowering Citi , Zions Bancorp and SVB Financial to equal weight from overweight.
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