Bank of America (BAC) at an Inflection Point - Goldman Sachs

August 25, 2016 9:30 AM EDT
Get Alerts BAC Hot Sheet
Price: $22.53 -0.44%

Rating Summary:
    24 Buy, 13 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
Trade BAC Now!
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

Goldman Sachs analyst Richard Ramsden sees an inflection point for Bank of America (NYSE: BAC) and reiterated a Conviction Buy List rating and price target of $17 after hosting an investor meeting with BAC Chairman and CEO Brian Moynihan on Wednesday.

"We believe that BAC is on the cusp of an inflection in operating leverage as revenue growth and cost reductions appear set to occur concurrently," he said.

"Historically, cost cuts have largely been offset by revenue attrition. However, BAC is now lapping many of its legacy revenue headwinds (i.e. portfolio divestures, loan run offs and footprint rationalization) as recent investments in the consumer and corporate franchises are beginning to bear fruit," he added.

They continue to believe that a 10% ROTCE is achievable (even without higher interest rates), and, with the stock trading at a P/TBV of 0.9x, they see valuation as compelling.

For an analyst ratings summary and ratings history on Bank of America click here. For more ratings news on Bank of America click here.

Shares of Bank of America closed at $15.40 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Hot Comments

Related Entities

Goldman Sachs Conviction Buy List, Goldman Sachs, Bank of America

Add Your Comment