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FBR Capital Upgrades Bank of America (BAC) to Outperform

October 16, 2014 6:31 AM EDT
Get Alerts BAC Hot Sheet
Price: $37.92 +0.29%

Rating Summary:
    19 Buy, 21 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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FBR Capital upgraded Bank of America (NYSE: BAC) from Market Perform to Outperform with a price target of $20.00 (from $18.00).

Analyst Paul J. Miller, Jr., said, "We are upgrading Bank of America Corporation (BAC) shares to Outperform from Market Perform and raising our price target to $20 from $18, given the belief that our FY15E TBV of $15.61 per share should offer good downside support at existing levels. Given drastically reduced litigation expenses going forward, we think the core
earnings power of the company should begin to accrete to existing shareholders, allowing book value growth at a company that has struggled to grow TBV since the crisis. We believe on target cost saves have proven management's ability to
execute its strategy to improve shareholder returns, and position the company to potentially generate EPS approaching or in excess of our $1.60 estimate for 2015. As such, we think the shares are likely to garner multiple expansion from existing levels. Following 3Q14 results and in conjunction with our upgrade, we are adjusting our FY15E operating EPS to $1.60 from $1.50. Further, we are also adjusting our FY14E operating EPS to $1.45 from $1.37."

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 $15.76 yesterday.



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