Removing interest-rate hikes from models is the biggest factor for Q4 estimate revisions; NII growth "should be fine."
He also raises Associated Banc-Corp (ASB +0.4%) to buy and sees potential in "beaten-down, low-multiple names" such as Comerica(CMA -0.3%), KeyCorp (KEY -0.6%), and Zions (ZION +0.7%). Signature Bank (SBNY +0.7%) and Sterling Bancorp (STL +0.8%) may benefit from a more dovish Fed, he writes.
Cuts Texas Capital Bancshares (TCBI -0.1%) to hold on concerns about mortgage warehouse concentration, credit quality, and estimate revision risk.
Overall, financial stocks are down. Financial Select Sector SPDR ETF (NYSEARCA:XLF) slips 0.8% in early afternoon trading.
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