Best Bank Stocks to Buy for 2025: Analyst Recommendations
As 2025 approaches, analysts are optimistic about the prospects for several banks in the financial sector. Economic growth, regulatory support, and a healthy corporate landscape are expected to drive loan growth and investment banking activities. However, market volatility and economic uncertainties, such as potential recessions and geopolitical tensions, may create challenges for certain bank stocks. With careful selection, investors might find lucrative opportunities in some of these undervalued bank equities. Here are ten bank stocks recommended by CFRA analysts for 2025. #### 1. JPMorgan Chase & Co. (JPM)
JPMorgan Chase remains a titan in the financial services industry with nearly $4 trillion in assets. Analysts predict a 29.6% upside potential, with a projected price target of $310. The bank’s performance is closely tied to the U.S. economy, which contributes approximately 75-80% of its revenue. The company is also gaining market share as more midsize firms lean towards the larger bank for financial services.
2. Bank of America Corp. (BAC)
With a stronghold in commercial and investment banking, Bank of America enjoys approximately a 25.5% upside, targeting $53 per share. Analysts anticipate a recovery in investment banking activities, thanks to pro-business policies expected from the Trump administration. The bank is positioned to exceed revenue estimates, particularly in net interest income, a crucial component of its revenue growth.
3. Wells Fargo & Co. (WFC)
Wells Fargo, known primarily for its U.S. lending operations, has marked upward potential of 29.1%, with a price target of $94. Analysts expect improvements in the bank’s return on equity with effective navigation of its restructuring initiatives under CEO Charles Scharf. Recent investments in its credit card business have been promising, and the bank may finally see its asset cap restrictions lifted.
4. HSBC Holdings PLC (HSBC)
Global banking giant HSBC presents an upside potential of 17.2%, with a price target of $69. Analysts highlight the bank’s significant exposure to Asian markets as an attractive factor, anticipating robust growth in the region. HSBC’s divestments of underperforming sectors are expected to enhance profitability, along with a decline in interest rates boosting asset management revenue.
5. Royal Bank of Canada (RY)
As Canada’s largest commercial bank, RY is forecasted with a 26.1% upside, targeting $144 per share. Analysts are optimistic about the bank’s historical return on equity and performance amidst economic downturns. With expected synergies from mergers and improved cost management at City National, the bank’s outlook remains strong.
6. Citigroup Inc. (C)
Citigroup is well positioned for institutional banking expansion, achieving a projected upside of 25.9% and a price target of $90. The bank has effectively executed its turnaround strategy, emphasizing technology and corporate treasury services. The planned exit from consumer banking in Mexico is seen as a positive move to streamline operations and enhance value for shareholders.
7. PNC Financial Services Group Inc. (PNC)
PNC is identified as having the most substantial upside potential at 52.4% with a target price of $265. Analysts anticipate improving net interest margins and looser funding costs will position the bank to exceed earnings expectations. Accelerating loan growth further strengthens PNC’s favorable outlook.
8. NatWest Group PLC (NWG)
NatWest is a major player in the U.K. banking sector and has a modest upside of 5.6%, with a target price of $10.56. Analysts commend its digital transformation and operational efficiencies that have substantially decreased its cost-to-income ratio, aiding the bank’s profitability.
9. M&T Bank Corp. (MTB)
M&T Bank is expected to experience a 46.8% upside, with analysts setting a target at $240. The bank’s strong fundamentals and consistent performance provide a solid investment opportunity for the coming year as it continues to strengthen its market presence.
10. Fifth Third Bancorp (FITB)
Fifth Third Bancorp rounds the list with an impressive prospective upside of 49.5%, targeting $51 per share. Analysts are optimistic about the bank’s potential to capitalize on economic improvements and its strategic initiatives aimed at growth.
Conclusion
As investors look towards 2025, identifying the right bank stocks could provide meaningful returns in a potentially fluctuating economic landscape. Analysts emphasize focusing on institutions with robust growth plans and solid market strategies as critical indicators for success. While market uncertainties persist, the recommended banks display resilience and promise for the upcoming year.
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