USB - BofA gets more bullish on banks upgrading JPM M&T Bank and ASB

Noting that 75% of bank stock outperformance to the S&P occurs in the first year of a recovery, Bank of America Securities analysts boost price targets by 18% on average for banks, implying an average 27% return for mega-caps, 13% for large regionals and 13% for SMID-caps.They raise their 2021 EPS estimates by an average of 20% for mega-cap banks, 20% for large-cap regionals, and 7% for mid-cap regionals.Upgrades: JPMorgan (JPM) and M&T Bank (MTB) to Buy and Associated Banc-Corp (ASB) to Neutral. Commenting on JPM, the analysts say: "JPM has, year after year, proven to be best-in-class managing risk in CIB (Corp & Investment Banking) while ouptperforming peers in revenue generation."Downgrades: U.S. Bancorp (USB) and Prosperity Bancshares (PB) to Underperform. In the USB rating cut, BofA analysts say the normalization of mortgage revenue could lead to downside risk to Street estimates.Several factors may make this recovery better for banks

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BofA gets more bullish on banks, upgrading JPM, M&T Bank and ASB