Embattled banking giant Bank of America Corp ( BAC ) caught a bit of bearish sentiment on Friday from analysts at two major Wall Street firms.
Goldman Sachs said it lowered its earnings estimates for BAC through 2012, noting that Warren Buffett's $5 billion investment in the company will have a dilutive effect on earnings. Still, the analyst maintained its "Buy" rating and $10 price target, which suggests a nearly 31% upside to the stock's Thursday closing price of $7.65.
Meanwhile, Sterne Agee cut its price target on BAC from $11 to $9 while maintaining its "Neutral" rating.
Bank of America shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of Bank Of America ( BAC ) have a .52% dividend yield, based on last night's closing stock price of $7.65. The stock has technical support in the $6 price area. If the shares can firm up, we see overhead resistance around the $9-$10 price levels.
Bank of America Corp ( BAC ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.6 out of 5 stars.
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