Bank of America Upgrade Pushes Shares Up 7%

Keith Horowitz of Citigroup reiterates a Buy rating on Bank of America (NYSE:BAC), writing that as much as $32 billion more could be needed to deal with mortgage-related losses, but “when you factor in the earnings power and the time it will take to resolve these issues, it appears to be manageable.” Horowitz adds that shares are already pricing in a large equity offering.

Here’s how Bank of America shares are reacting to the upgrade:

Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $6.27, up $0.46, or 7.92%. They have traded in a 52-week range of $4.92 to $15.31. Volume today was 336,367,721 shares versus a 3-month average volume of 257,959,000 shares. The company’s trailing earnings are $-0.31 per share.