Oppenheimer downgrades major U.S. banks, favors alternative asset managers

Analyst
โดย Investing.com·Read original
Summary · why it matters

Oppenheimer downgraded several large U.S. bank stocks on Tuesday, arguing that rich valuations have left little room for further upside. The brokerage downgraded Goldman Sachs and Morgan Stanley to Underperform from Perform, while cutting Bank of America and Citigroup to Perform from Outperform. It maintained Outperform ratings on PNC Financial Services and U.S. Bancorp, recommending investors rotate into alternative asset managers such as ARES Management, Blackstone, and KKR. Oppenheimer said the banking sector has shifted from years of structural undervaluation to valuations that now reflect optimism over sustained earnings growth, with commercial banks trading near the upper end of historical valuation ranges and investment banks trading well above long-term averages. The firm raised its second-quarter 2026 earnings estimates and lifted its 2027 forecasts, now expecting the investment banking wallet to reach about 46 basis points of U.S. nominal GDP, roughly 20% to 25% above what it considers a normal level.

Impact on stocks 10

Financials± Mixed · 6 stocks
Morgan Stanley
MS
▼ NegativeCapitalrelevance

Oppenheimer downgraded Morgan Stanley to Underperform from Perform, citing rich valuations with limited upside.

Ares Management LP
ARES
▲ PositiveCapitalrelevance

Oppenheimer recommends rotating into alternative asset managers including ARES Management, citing favorable valuations and earnings growth.

U.S. Bancorp
USB
▲ PositiveCapitalrelevance

Oppenheimer maintained Outperform rating on U.S. Bancorp, recommending it as a preferred bank stock.

Bank of America Corp
BAC
▼ NegativeCapitalrelevance

Oppenheimer downgraded Bank of America to Perform from Outperform, citing rich valuations.

Goldman Sachs Group Inc
GS
▼ NegativeCapitalrelevance

Oppenheimer downgraded Goldman Sachs to Underperform from Perform, citing rich valuations.

Digital Finance & Tokenization▼ · 2 stocks
Citigroup Inc.
C
▼ NegativeCapitalrelevance

Oppenheimer downgraded Citigroup to Perform from Outperform, citing rich valuations.

Artificial Intelligence▲ · 1 stocks
Blackstone Group Inc
BX
▲ PositiveCapitalrelevance

Oppenheimer recommends rotating into alternative asset managers including Blackstone, citing favorable valuations and earnings growth.

Aging Population▲ · 1 stocks
KKR & Co. Inc.
KKR
▲ PositiveCapitalrelevance

Oppenheimer recommends rotating into alternative asset managers including KKR, citing favorable valuations and earnings growth.

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