Bank of America Securities is bullish on bank stocks in 2026, citing multiple factors like deregulation, a better capital-markets cycle, rising capex, and stable credit quality. The focus is on GSIBs and regionals showing growth. Top buy-rated calls include Citigroup, Wells Fargo, Morgan Stanley, and Goldman Sachs. Price targets and EPS forecasts are optimistic for these stocks. The sector is expected to benefit from mergers, IPOs, and stability. AI is not expected to drive profits in 2026. Credit quality is forecast to remain stable. The narrative for 2026 is about effective execution and available opportunities. The outlook is positive for GSIBs and select turnarounds like Citi and Wells. BofA sees a multi-year re-rating cycle for banks, led by GSIBs and select regionals. The focus is on revenue, costs, capital, and credit as key drivers of returns. The company emphasizes clear execution paths and potential catalysts for growth in the banking sector.

Read more at Yahoo Finance: Bank of America makes bold call on bank stocks