Deutsche Bank Recommends Buying Goldman Sachs AFTER 20% Move Higher in Three Weeks

With US bank stocks up in some cases near 20% since the Trump election, Deutsche Bank thinks it is now time to upgrade the banks (although it would have been far more helpful a few weeks ago), in particular issuing a buy rating on Goldman Sachs (NYSE:GS).

The market environment for banks is looking strong

The November 29 report from bank Research Analyst Matt O’Connor and his team thinks bank stocks are pricing in higher rates and are facing strong macro tailwinds to assist their performance.

Deutsche Bank assumes a rate hike in December, two hikes in 2017, and four in 2018. They forecast higher loan growth, assuming high single-digit loan growth in...