Also boosts Regions Financial (RF -2.8%) to buy from hold.
Downgrades M&T Bank (MTB -1.8%) and Zions Bancorp to hold from buy.
For 2020-'21, "banks face slowing EPS growth and ongoing sentiment hurdles," Jefferies analysts led by Ken Usdin write in a note.
Sees base case for a stable economy, but "trade talk could tip it either way."
Sees 2020 election weighing on P/Es and EPS estimates based on regulatory outlook.
"EPS revisions are biased down with more rate cuts likely," they write.
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