Big banks are still a strong investment ripe for further growth, Barclays analysts said in a note Jan. 2.
Barclays is raising its 2018 earnings estimates and price targets for its entire coverage in the large cap banking sector, plus introducing 2019 estimates that suggest continued growth.
“The biggest driver of the 2018 EPS increase is a reduction in the corporate tax rate, in addition to continued federal funds rate hikes,” analysts wrote. “Still, our estimates reflect double-digits EPS growth at the median bank prior to tax reform and over 25% growth with it.”
