"Old economy" stocks are back in vogue, so some bank stocks are poised for substantial gains, said one veteran analyst in a report Monday.

Katrina Blecher of Brown Brothers Harriman became more bullish on the banking group and raised her short-term recommendations to "buy" from "neutral" on Wells Fargo & Co., Bank of New York Co., FleetBoston Financial Corp., Mellon Financial Corp., and SunTrust Banks Inc. "In the current environment, we believe high-quality institutions that are trading at attractive levels will be the stars," said Ms. Blecher. "This late in an economic expansion, we prefer companies whose earnings growth is based upon diversified revenue sources or non-credit-related lines of business."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.