Despite substantial jitters surrounding U.S. banks heading into earnings season, Citigroup and Bank of America offer significant value and could double in value over the next two years, Dick Bove, Vice President of Equity Research Financial Sector at Rafferty Capital told CNBC on Thursday.
Bank of America reported earnings on Thursday just ahead of analyst forecasts.
Wells Fargo is also due to report, while Citi's numbers are out on Friday. On Wednesday JPMorgan Chasereported quarterly profit ahead of forecasts, although analysts' expectations were low. The S&P financial sector was up 2.25 percent on Wednesday -- its best day in over than a month.
"To say that JPMorgan beat its estimates is a little bit of a stretch at this point," the widely followed Bove said.
"In the case of both Citi and Bank of America, you have two companies which are selling at 35 to 40 percent discount to book value which is, in my view, absurd. I think these stocks are unbelievably attractive," Bove said. "And I think that both stocks over the next 18-24 months should be able to double."