Bove Is Bullish on Banks (XLF)

Rochdale Securities analyst Dick Bove is bullish on three major banks. On CNBC's Fast Money, Bove suggested that investors get long Citigroup (C), Goldman Sachs (GS), and the Bank of New York (BK) ahead of earnings. He believes that these three banks will report strong quarterly earnings and are well positioned for future growth. Bove was not bullish on all banks however. He suggested some short ideas as pair trades. Bove loves Goldman Sachs (GS) noting that the investment bank may be the best run company in the world. He recommended buying Goldman Sachs (GS) and selling Morgan Stanley (MS). Bove think that Bank of New York is cheap selling at $31.61 per share in after hours trading. Bank of New York is currently trading at 11 times forward earnings. He would buy Bank of New York and drop shares of Northern Trust (NTRS). Bove suggested buying Citigroup(C) on strong earnings going into the quarter and selling Wells Fargo (WFC).