Goldman Sachs Upgrades Large U.S. Banks on Earnings Prospects

By Sarah Jones

May 21 (Bloomberg) -- Goldman Sachs Group Inc. upgraded large U.S. banks to “neutral,” saying strong mortgage and capital markets earnings will likely continue into the second quarter.

The brokerage also upgraded U.S. trust banks to “attractive,” saying revenue may have bottomed in the first quarter, and raised its recommendation for U.S. credit card companies to “neutral.”

Goldman Sachs reiterated its “cautious” stance on U.S. regional banks, saying the lenders are “not out of the woods yet.”

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.