Top-ranked analyst downgrades Bank of America, other bank stocks, says wait to see if Trump delivers

Pedestrians pass in front of a Bank of America Corp. branch in New York.
Mark Kauzlarich | Bloomberg | Getty Images

Top-ranked analyst David George of Baird downgraded a group of bank stocks on Wednesday, advising clients to take profits and wait for a pullback following the sector rally on Donald Trump's presidential victory.

"We think the bank rally post-election has largely discounted potential benefits from rising interest rates, lower tax rates, and more aggressive capital return," George wrote in a note. "We believe investors should book gains and wait for more evidence that the structural improvement in macro trends and regulations will materialize.

In his report, the analyst downgraded Bank of America and Capital One Financial to neutral from overweight, while Fifth Third Bank Bancorp was downgraded to underperform from neutral.