Ahead of Q1 reporting season, Deutsche says it remains constructive on group valuations, noting the industry’s relative weakness vs. the S&P 500 is at about its highest in the last 13 years. Top picks:
FCB Financial (NYSE:FCB), with material excess capital, pristine credit, solid growth, and good expense control. The team considers the bank to be its top “take-out play.”
Great Western Bancorp (NYSE:GWB), with mid-to-upper teens EPS and ROTCE growth this coming year which isn’t dependent on rate hikes.
Signature Bank (NASDAQ:SBNY), which the team expects will achieve double the rate of EPS growth of the peer group.