MARKET TALK: Credit Suisse Lifts European Banks Weighting

8th Jul 2010 07:53

0653 GMT [Dow Jones] Credit Suisse increases its weighting of European banks to benchmark from 10% underweight, and stays benchmark of US banks. Upgrades European banks as macro factors are now less of a headwind. Also cites valuation, as "European Banks are trading some 20% below the historical norm on preprovisioning profits, after we adjust for write-offs and deleveraging." Adds tactical indicators are close to capitulation levels. Suggests buying Lloyds (LYG), Santander (STD), Standard Chartered (STAN.LN), Sberbank (SBER.RS), JPMorgan (JPM), HSBC (HBC), Unicredit (UCG.MI), Commerzbank (CBK.XE), and BNP (BNP.FR). ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 08, 2010 02:53 ET (06:53 GMT)