Is Wall Street Buying into Bank of America?
Analyst Keith Horowitz has upped his rating for Bank of America (NYSE:BAC) to neutral from buy due to the recent stock run-up. The company is currently up 48 percent from last year and is the fifth best stock in the S&P 500. Horowitz also ups his price target to $8.50 from $8.
Last week Bank of America agreed with other mortgage servicers to settle over foreclosure abuse easing some of the problems the company was having. Last month their fourth quarter earnings were quite impressive as well with a stronger-looking capital base.
Horowitz does however have some reserve about jumping on the stock just yet, and says, “BAC’s recent outperformance reflects the market’s increased comfort with its capital position, but at these levels we believe investor focus will shift to earnings, which have been weak,”
FactSet Research’s average target price for Bank of America is $8.72. Of the 34 ratings, 20 are at hold, 11 buys and three sells.
Here’s how shares of Bank of America are reacting to the news:
Bank of America Corporation (NYSE:BAC): BAC shares recently traded at $8.01, down $0.24, or 2.91%. They have traded in a 52-week range of $4.92 to $14.91. Volume today was 216,517,725 shares versus a 3-month average volume of 278,760,000 shares. The company’s trailing P/E is 799.00, while trailing earnings are $0.01 per share.
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