After struggling through most of 2017, bank stocks are ready to break out, according to a Credit Suisse analysis.
"Improved prospects for tax cuts, and more importantly, progress on regulatory reform," are the main drivers that will see an at least 10 percent return ahead for select stocks, analyst Susan Roth Katzke and others said in a research note.
The firm says Bank of America, JPMorgan Chase, Morgan Stanley and Citigroup will be the main beneficiaries of a suddenly improving climate for the $16.5 trillion banking industry. Analysts raised Morgan Stanley to outperform from neutral and SunTrust to neutral from underperform, while cutting Goldman Sachs to neutral from outperform even though it raised its price target for the firm.
In addition, Credit Suisse changed price targets for several other banks (only Northern Trust was lowered):