Shares of Wells Fargo (NYSE: WFC), Regions Financial (NYSE: RF) and Zions Bancorp (NSDQ: ZION) all finished higher on Monday as buyers were sparked following an upgrade to all three stocks by analysts at Collins Stewart, according to a MarketWatch report.
The firm lifted Wells Fargo from a hold to a buy and did the same for shares of Regions Financial. Zions saw shares raised from a sell to a hold. The change comes just before U.S. banks begin reporting first quarter results, with many banks reporting throughout April and into May.
“We are upgrading several stocks given our more favorable outlook on credit quality and capital, including our expectations that commercial real estate will be a more manageable event over the course of 2010,” Collins Stewart said in a research note Monday, according to MarketWatch.
The bank posted strong results while repaying funds from the Troubled Asset Relief Program in the quarter as well as booking provision for future loan losses.
Dozens of banks have paid back TARP money, thus relieving them of dividend payments to the U.S. Treasury along with the business rules that came with the money.
Generally, Wall Street has looked at this trend optimistically as the banks essentially don’t have that burden on them, thus allowing for complete concentration on the bottom line and shareholder equity.
