UBS' Fairbrother expects Euro bank share price to double up

UBS' Paul Fairbrother believes European banks could see their share prices double in the next few years as stocks recover from their depressed valuations.

The manager of the £57m European Equity fund plans to overweight the sector over the next few months. “The headline valuations are historically very low and the price is telling you there is still a lot of fear around,” he says. “After the recession, the good banks will come out stronger than before, and there is at least a 50% to 100% upside in the current valuations. “In addition, the regulatory framework has got easier as the watchdogs recognise they need to let banks recover. “At the moment, I am not finding enough stocks to go overweight banks, but it feels like the right d...