Nomura Reiterates Bullish View on Bank of America (BAC) Following Strong Q3

October 18, 2016 7:19 AM EDT
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Nomura Securities analyst Steven Chubak reiterated his Buy rating and $19 price target on Bank of America (NYSE: BAC) following strong Q3 results, which he says provides fodder for bulls.

Chubak commented, "BAC reported 3Q EPS of $0.41 (>10% ROTE, ex DTA writedown, DVA loss), above our estimate of $0.32 and cons. of $0.34. Beat was driven by stronger fee income (+$0.03), notably in FICC / DCM, better efficiency (+$0.04), lower credit costs (+$0.01), and a lower tax rate (+$0.01, inclusive of DTA writedown). Other highlights: Strong core loan growth (+7% YoY), which helped drive NII / NIM resiliency; favorable consumer credit trends (lower NCOs, NPLs); and healthy builds in both CET1 (+40bps QoQ) and Tangible Book (+11% YoY). Bottom Line: BAC bulls should find the results encouraging with clear progress on multiple fronts; and while shares have performed strongly in recent months, we expect continued O/P off the back of this print, with favorable revenue / expense trends expected to drive cons. higher as well."

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 $16.05 yesterday.



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Analyst Comments, Analyst EPS View, Analyst PT Change

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Bank of America, Nomura

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