Wells, Goldman among top bank picks for Q2 at Seaport Research

Seaport Research says U.S. diversified financials stocks are battling a challenging environment for capital markets in the near-term and still material macro uncertainties, but while the banks may be more of a “less-bad-than-feared” story rather than a growth story, the “good news is that investors seem materially underweight financials and the stocks are cheap by historical standards,” which leads the firm to be “more inclined to believe financial stocks can climb the wall of worry.” The firm, which sees investors as willing to look beyond near-term challenges toward potentially improving 2024 prospects, identifies Wells Fargo (WFC), BNY Mellon (BK) and Goldman Sachs (GS) as its top picks in the space.