Nomura highlights the attractive valuations of EU banks, but says the sector is volatile and its preference if for northern European commercial banks over those in the south.According to Peace, southern European banks are under a greater earnings risk than the northern sector due mostly to the impact of austerity on growth and credit quality, and the cost and availability of funding.But he thinks the risk to northern banks, largely through government bonds and second-order exposures like interbank loans, is "over-discounted".The Japanese broker says Lloyds offers good upside potential but cannot justify the valuation for RBS, and prefers HSBC over Standard Chartered.Serco's recent dull share price is not enough to get Panmure Gordon to change its negative stance on the stock as the broker's preference in the sector remains elsewhere.Full-year trading for the outsourcing giant remains in-line with expectations, according to the broker, as the group reiterated its margin guidance in a statement Thursday.Serco remains an excellent operator, adds Brown, but the valuation - trading at a 2011 price-to-earnings ratio of 16 - "remains up with events".Recent "supply chain issues" have knocked the share price. The broker retains its 'sell' recommendation and 360p target price.Peel Hunt keeps its positive stance on Misys after Thursday's tender offer, saying that its current trading still allows for plenty of potential.The broker had originally expected around 230m shares to be bought back at 290p, but the financial software provider instead bought back 169m shares at 310p each. Misys committed to handing back £670m to investors following the sale of a big stake in healthcare division Allscripts earlier this year. It still owns 10%.It will return another £145 by way of a pro rata return of capital to all shareholders, so the broker has cut its 2012 earnings per share estimate by 4% due to the higher than expected share count.A 'buy' rating is maintained while the broker raises its target price from 340p to 350p.