MARKET TALK: Bernstein Not Keen To Join Any Rally In Bk Stocks

26th Jul 2010 07:49

0649 GMT [Dow Jones]--Bernstein Research says it is not keen to join what may be a stress test induced rally in European banks following the EU's stress tests, and criticizes the testing methods. "The stress test was a reasonable test of banking resilience to a 'double-dip' recession but failed to address the main concern of the market about the impact of a potential sovereign default. Nevertheless it was not the complete whitewash it initially appeared," says Bernstein analyst Dirk Hoffmann-Becking. Following the tests, he prefers Barclays (BCS), rated outperform with a 370p target, Credit Suisse (CS), rated marketperform with CHF50 target, and UBS (UBS), rated underperform with CHF14.50 target. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 26, 2010 02:49 ET (06:49 GMT)