Value investor David Herro sees big upside potential for European banks

A European Union (EU) flies alongside a British Union flag, also known as a Union Jack in London.
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Value investor David Herro told CNBC on Tuesday he sees big upside potential in 2021 for European bank stocks, citing geopolitical clarity and an economic recovery from the coronavirus pandemic.

"After a decade of capital build and slow growth, I think the factors that have hurt this sector in the past are now, finally, switching from headwinds to tail winds," said Herro, chief investment officer for international equity at Harris Associates.

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