Value investor David Herro sees big upside potential for European banks

Share
A European Union (EU) flies alongside a British Union flag, also known as a Union Jack in London.
Jason Alden | Bloomberg Creative Photos | Getty Images

(This story is for CNBC Pro subscribers only.)

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.

More In CNBC TV Picks

CNBC ProLeon Cooperman likes GM and these other stocks, even as he's worried about the overall market
CNBC ProAriel's John Rogers likes this stock as a way to ride the hot IPO trend
CNBC ProTom Lee says hot IPOs may be a sign retail investors are coming back to stocks