Analysts Recommend Top Bank Stocks for 2025 amid Economic Uncertainty

Citi’s Positive Outlook and Market Landscape

As we look ahead to 2025, Citi is well positioned for growth in the institutional banking sector, demonstrating success in executing its turnaround strategy. Financial analysts suggest that robust economic growth and a conducive regulatory environment may facilitate impressive loan growth across major banks. Additionally, many investors remain optimistic about a potential rebound in mergers and acquisitions, which could boost fee revenue for investment banks.

However, uncertainty surrounding former President Donald Trump’s tariff policies, alongside aggressive federal layoffs, has introduced volatility into the markets. Some bank stocks now face credit risks, especially as fears of a recession loom over the United States. Given this backdrop, selective bank stock investment is essential as we approach 2025. ### Top Bank Stocks to Consider

According to a recent report from CFRA, here are ten bank stocks that analysts recommend for potential upside in the upcoming year:

1. JPMorgan Chase & Co. (JPM) – 29.6%

   • JPMorgan Chase stands tall as one of the largest global financial services firms with nearly $4 trillion in assets. Analyst Kenneth Leon emphasizes that JPMorgan’s performance will significantly rely on the U.S. economy, given that 75% to 80% of its total revenue is domestic. The bank is poised to gain market share as more midsize companies choose larger institutions for their banking needs. CFRA has a “buy” rating and a $310 price target for JPM.

2. Bank of America Corp. (BAC) – 25.5%

   • As a leader in commercial and investment banking as well as wealth management, Bank of America’s performance is expected to benefit from pro-business policies under the Trump administration. Leon anticipates that the bank will outperform expectations in net interest income (NII) and noninterest investment banking income. CFRA’s price target for BAC is $53, with a “buy” rating.

3. Wells Fargo & Co. (WFC) – 29.1%

   • With a strong presence in the U.S. lending market, Wells Fargo aims to enhance its return on tangible common equity. Analyst Alexander Yokum expresses confidence in the bank’s restructuring efforts under CEO Charles Scharf and mentions potential relief from asset cap restrictions in 2025. CFRA has a “buy” rating and a price target of $94 for WFC.

4. HSBC Holdings PLC (HSBC) – 17.2%

   • A global banking giant, HSBC holds substantial sway in the Asian markets, which are expected to see long-term growth. Analyst Firdaus Ibrahim points out that HSBC’s divestments and focus on asset management will support revenue growth. CFRA’s price target for HSBC stock is set at $69. 5. Royal Bank of Canada (RY) – 26.1%
   • The Royal Bank of Canada, known for its strong history of return on equity, is anticipated to continue thriving amid reduced deposit pricing pressures and the successful integration of City National in the U.S. CFRA has set a price target of $144 for RY, maintaining a “buy” rating.

5. Citigroup Inc. (C) – 25.9%

   • Citigroup, a diversified global financial services company, is noted for its market leadership in technology platforms. Leon reveals that Citi’s strategic decision to exit consumer banking in Mexico will streamline operations and enhance revenue growth. The bank has a $90 price target from CFRA, accompanied by a “buy” rating.

6. PNC Financial Services Group Inc. (PNC) – 52.4%

   • PNC is set to improve its net interest margin and beat earnings expectations, according to Yokum. The bank is projected to benefit from lower funding costs and accelerating loan growth. CFRA rates PNC as a “strong buy” with a price target of $265. 8. NatWest Group PLC (NWG) – 5.6%
   • The U.K.-based NatWest is focusing on digital transformation and cost management to improve profitability. Ibrahim highlights the bank’s strong metrics, including a low loan impairment rate. A price target of $13 is set by CFRA with a “buy” rating.

7. M&T Bank Corp. (MTB) – 46.8%

   • M&T Bank is experiencing robust balance sheet growth with the potential for substantial earnings growth. Yokum sees the bank benefiting from a strong loan portfolio and a projected rise in net interest margin. CFRA has assigned a “strong buy” rating and a price target of $260. 10. Fifth Third Bancorp (FITB) – 49.5%
   • Fifth Third has been proactive in leveraging its deposit base to optimize loan growth. With an anticipated improvement in return on equity and a focus on share buybacks, CFRA gives FIFO a “strong buy” rating and a price target of $59. ## Conclusion

Investors should navigate the fluctuating landscape of bank stocks with caution but can benefit from analysts’ recommendations as they look to capitalize on potential growth in 2025. With an emphasis on the importance of stock selection, the above banks are positioned well according to CFRA’s analysis.

This article was originally published on an earlier date and has been updated with recent information as of March 20, 2025.

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