Bove: Trump's a grand slam for the banks

Rafferty Capital Markets Banking Analyst Dick Bove discusses his outlook for banks under Trump.

Financials Poised to Win ‘Bigly’ Under Trump

By Stocks FOXBusiness

Bank stocks have already seen big gains since Donald Trump’s election victory, but that may be just a small sign of what is to come for banks under a Trump administration, said Rafferty Capital Markets Banking Analyst Dick Bove.

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“So you’re talking about a group of companies that are about to see a spurt in their earnings as a result of adjustments that we think are going to occur at a time when the multiple on their stocks is extremely low.  I think these stocks have a considerable amount further to go on the upside,” Bove said.

He said legislative change will be very different under a Trump White House as regulations are likely to get less severe for Wall Street. He added that he expects Trump to make changes to the Federal Reserve – an institution he was highly critical of on the campaign trail.

The bottom line, though: Bove said Trump’s overall economic plans are likely to provide a boost for the private-sector.

“I think that the economic programs that Mr. Trump has proposed are going to be extraordinarily beneficial for companies that raise funds, the companies that fund from the private sector the growth in the economy and of course that’s the banks,” he explained.

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Bove forecasted that due to market factors, as well as Trump’s economic policies, financial sector stocks could see huge gains.

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“I think you can expect at least a 50% more by the end of 2017 and maybe over a three-year period a 100% increase.”

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