Bank of America (BAC) at an Inflection Point - Goldman Sachs
- Wall Street falls as investors ready for Trump's inauguration
- IBM (IBM) Tops Q4 EPS by 13c, FY17 EPS Guidance Beats Consensus
- American Express (AXP) Misses Q4 EPS by 7c, FY17 EPS Guidance Tops Views at Mid-Poinit
- Skyworks Solutions (SWKS) Tops Q1 EPS by 3c, Offers Q2 Guidance, Announces Buyback
- After-Hours Stock Movers 01/19: (SWKS) (QRVO) (NVAX) Higher; (AFMD) (SGYP) (IBM) Lower (more...)
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.
Shares of Bank of America closed at $15.40 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Goldman Sachs (GS) PT Raised to $256.00 at Oppenheimer Following 4Q Report
- CSX (CSX) Activist Rumblings Should Put Upward Pressure on Shares, Says Deutsche Bank
- Stocks with call price movement; BAC MS
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments
Related EntitiesGoldman Sachs Conviction Buy List, Goldman Sachs, Bank of America
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!