Bank of America (BofA) initiated coverage on Israel's four largest banks on Wednesday. The firm assigned "buy" ratings to Hapoalim, Leumi, Mizrahi-Tefahot, and Israel Discount Bank.
Analyst David Taranto stated the banks are well-leveraged. He noted they are positioned to benefit from economic momentum following the Gaza war.
Taranto's report cited several fundamental strengths for the positive outlook. These include strong balance sheets, excess capital, and high efficiencies. The banks also feature attractive valuations.
The institutions had previously been under the radar for many international investors. Following the news, Israel's main banking index rose by 0.7% on Wednesday.