Morgan Stanley: If the Strait of Hormuz reopens, European bank stocks are expected to rebound According to a report by Golden Finance on June 17th, Morgan Stanley analysts wrote that if the Strait of Hormuz were to reopen, European banks' stock market valuations should rise to 11 to 12 times their profits by the end of this year. The growth of loan scale will be faster than current expectations, and the growth rate of bank fees will also be faster than Morgan Stanley analysts' predictions. Morgan Stanley analysts say that the profits created by European banks are comparable to pre crisis levels, although valuations have not kept up. Morgan Stanley analysts point out that investors favor growth, so a risk chasing market rebound will bring the greatest returns to investment banks such as Deutsche Bank and Societe Generale. They stated that although AI may intensify deposit competition among the banking industry, the broader growth benefits of this technology will outweigh the impact of any profit margin compression. A European banking indicator rose 1.4%.