'You Have to Be Bullish,' on US Stocks: Whitney

The bailout in Cyprus that rattled the markets Monday and rekindled fears of the European debt crisis likely will be beneficial for U.S. assets, banking analyst Meredith Whitney told CNBC.

"You have to be bullish on U.S. equities here," Whitney said on "Closing Bell."

Stocks fell on news that bank depositors would be taxed as part of a $13 billion bailout plan engineered by the European Union.

(Read More: How Tiny Cyprus Could Still Have Big Market Impact)

Known more for her pessimistic take on the the markets, and banks in particular, Whitney has turned in the opposite direction.

Meredith Whitney
Graham Morrison | Bloomberg | Getty Images
Meredith Whitney

"Without a doubt," she said when asked whether she would be buying U.S. stocks. "I have not been this constructive, this bullish on the U.S., on equities in my career."

Over the past two years, Whitney has come under some fire since she incorrectly predicted in late 2010 that the municipal bond market was about to blow up.

However, her most recent appearance on CNBC, on Dec. 18, proved prescient, when she turned bullish on banks.

The KBW Bank Index is up 10 percent since, and three of the companies she named -Bank of America, Citigroup and Discover Financial - all have seen strong gains.

(Read More: JPMorgan, Goldman Sachs Flagged in Fed's Review)

She reiterated her call on both Bank of America and Discover, predicting that BofA could be close to double its current price by 2014 and Discover has "all guns blazing."

That positive outlook on banks comes even though Whitney acknowledged the industry is likely to remain in the crosshairs of Congress.

A panel last week ripped JPMorgan Chase for its handling of the London Whale trading losses as the drumbeat has gotten louder to break up too-big-to-fail banks.

Whitney said she wouldn't be a buyer of JPMorgan stock.

"It was bad," she said of Thursday's congressional hearing into the firm's trading losses. "It reminded me of how bad it was seeing Goldman Sachs in the same position. It took a long time for Goldman to get over that. It will probably take a long time for JPMorgan to get over it."