Deutsche Bank Downgrades Bank of America (BAC) to Hold
- Donald Trump Sworn in as 45th U.S. President
- Wall Street ends higher as Trump becomes president
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Apple (AAPL) Sues Qualcomm (QCOM) Over Patent Royalties in Antitrust Case - Bloomberg
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Deutsche Bank downgraded Bank of America (NYSE: BAC) from Buy to Hold. Analyst Matt O-Connor sees the stock as fairly valued.
"While we don’t view BAC shares as pricey, we also don’t view the valuation as depressed," said O-Connor. "BAC shares now trade at 11x our 2017e, a slight premium to other market sensitive banks and about 65% relative to the S&P 500. Upside to the stock seems increasingly dependent on a pickup in economic activity, higher interest rates, and stronger capital market revenues as more company specific positives (such as good expense mgmt, de-risking of the credit book, and solid capital build) seem priced in."
"Our $17.50 target price assumes BAC shares trade at a 5% premium to our target group multiple for the Market Sensitive banks of ~11x our 2017E given continued execution on expenses, capital and credit. Our target group multiple assumes Market Sensitive banks trade at a ~20% discount to the overall bank group given more regulation, a more volatile business mix and potentially lower long-term growth prospects. Primary downside risks include continued low interest rates, weak capital markets revenues, and an unfavorable political/regulatory landscape," added the analyst.
Shares of Bank of America closed at $17.01 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Deutsche Bank Downgrades Bladex (BLX) to Hold
- UPDATE: SunTrust Robinson Humphrey Downgrades Pennsylvania Real Estate Investment Trust (PEI) to Hold
- Bassett Furniture (BSET) PT Raised to $28 at Stifel Following 4Q EPS Beat
Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades
Related EntitiesDeutsche Bank, Bank of America, Standard & Poor's
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!