Stifel Nicolaus has upgraded financial services company, Bank of
) to a "Buy" on Monday.
The firm has upgraded BAC from a "Hold" to a "Buy," and has
given the company a price target of $11. This price suggests a 15%
increase over the stock's current price of $9.32.
An analyst at the firm, believes that due to bank's position in
the market, it is expected to have results much better than its
competition in the next two years. The analyst believes that BAC
will see EPS growth by 30% in 2014, compared the the rest of the
big banks, only expecting to increase their EPS growth by 5%.
The analyst commented, "we believe that without the declining
expense base lever that BAC possesses, many banks are likely to
post stagnant/modest EPS growth over the next two years as net
interest margin pressures continue and loan loss provisioning
inflects," Mutascio comments. "BAC is actually better positioned
for the current environment than many banks that have already bled
the loan loss reserves dry, have little exposure to mortgage
origination and debt underwriting in the low interest rate
environment, and have no material expense reductions on the
Looking ahead, the firm expects BAC to see EPS of 41 cents in
2012, 92 cents in 2013, and $1.20 in 2014.
Bank of America shares were up 19 cents, or 2.08% during
premarket trading Monday.
The Bottom Line
Shares of Bank of America (
) have a .44% dividend yield, based on Friday's closing stock price
of $9.12. The stock has technical support in the $8 price area. If
the shares can firm up, we see overhead resistance around the $10
Bank of America Corp(
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 2.7 out of 5 stars.
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, as well as a detailed explanation of
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