Bove: These Two Banks Can Double

Banks aren't just storing money, they're practically printing it. Well, that's if you own banking shares.

After reporting earnings, Citigroup is near multiyear highs while JPMorgan Chase is near its all-time highs. Later this week, Goldman Sachs and Morgan Stanley will be among other banks reporting earnings. But, with banks reaching such lofty levels, are they now a buy?

We talk numbers with Dick Bove, vice president of equity research at Reafferty Capital Markets. One of the most respected bank analysts on earth, Bove now makes this bold call: There are a couple of very large names he thinks may double in price.

Really. Double. 100% return. No kidding.

And, here's the interesting thing: Bove says the banks' core business – the daily operations of what banks do – is not doing hot.

"If you look at the core," says Bove, "the core was not good. The core showed that loans did not go up. The core showed net interest margins went down dramatically – not a little bit. They went down a lot."

But there's a huge bright spot for the banks, according to Bove.

"I still want to buy the stocks," says Bove. "Because what came out of the quarter that was really good is that these companies are loaded with excess liquidity."

And that, posits Bove, is will push earnings higher with an improving economy.

So, what very large banks does Bove think will double? Watch the video above to hear the rest of his interview with Talking Numbers.

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