Three bank stocks to avoid — and 18 to buy — from analysts at Jefferies

Deep Dive

Analysts at the firm rolled out their coverage of 32 regional banks ahead of annual regulatory stress tests in June

Last Updated: May 21, 2025 at 7:29 p.m. ET
First Published: May 21, 2025 at 11:14 a.m. ET

This is the time of year when bank-stock investors gear up for the results of federal regulators’ two main annual events for the industry — stress tests and the review of banks’ plans to deploy excess capital through dividend increases and stock buybacks. Analysts at Jefferies led by David Chiaverini rolled out coverage of 32 regional banks on Tuesday. Three stood out with “underperform” ratings.

In a 440-page report, the analysts laid out a positive scenario for U.S. regional banks overall, counting on a rebound for loan growth, the widening of net interest margins, strong credit quality, high levels of capital to support dividends and stock buybacks and “attractive” valuations.