Bank of America Corp. BAC, -0.58%, JPMorgan Chase & Co. JPM, +0.23%, Citigroup C, -0.49%, Morgan Stanley MS, -1.05%, Goldman Sachs Group Inc. GS, -0.79% and U.S. Bancorp USB, +0.08% are being recommended by Oppenheimer as undervalued to the market, the firm said in a research note on Friday. The KBW Nasdaq Bank Index BKX, -0.43% fell about 30% relative to the market in the weeks immediately after the collapse of Silicon Valley Bank in March, even though the industry’s fundamentals have remained stable in the ensuing months, Oppenheimer analysts said. “The underperformance has not yet been recouped,” analysts said. “Thus, the stocks remain highly undervalued.” While the Fed’s “bungling of quantitative tightening” has caused rates to rise faster and higher than ideal for banks, the hikes “are net-net still a good thing.” Oppenheimer also sees “an extraordinary dispersion of outcomes in the industry with regard to net interest income.”
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