Oppenheimer has advised investors to sell major US bank stocks after JPMorgan Chase, Goldman Sachs, and Bank of America each reached all-time highs in June. The call suggests the banking rally may be exhausted after a prolonged run that has pushed valuations to elevated levels.
Oppenheimer advised investors to sell major US bank stocks after JPMorgan Chase, Goldman Sachs, and Bank of America each hit all-time highs this month.
"Take the money and run," Oppenheimer said in a note, arguing the rally in the largest US lenders has left little room for further gains.
JPMorgan, the largest US bank by assets, Goldman Sachs, and Bank of America each reached fresh record levels in June, extending a rally that has outpaced the broader market. The three banks have benefited from higher net interest income and a resilient economy, though Oppenheimer now sees limited upside.
The sell call could trigger profit-taking across the banking sector. If other analysts follow, it may cap further upside for financial stocks and weigh on the S&P 500 given the sector's weighting.
Oppenheimer did not disclose specific price targets or revised ratings for the three banks. The recommendation comes as the banking sector has rallied sharply this year, with JPMorgan up more than 20% year to date through June.
The call is contrarian relative to consensus. Most analysts covering the three banks maintain buy or overweight ratings, according to data compiled by Bloomberg. JPMorgan trades at about 13 times forward earnings, above its five-year average of 11 times.
The sell signal suggests Oppenheimer sees the risk-reward as skewed to the downside after the recent run. Investors will watch second-quarter earnings in July for signs of margin pressure or slowing loan growth that could validate the call.
This article is for informational purposes only and does not constitute investment advice.
