Citi Lops BofA (BAC) to Neutral; Still Sees Lingering Issues to Sort Out
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Price: $13.43 +0.52%
Rating Summary:
10 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
10 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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Bank of America (NYSE: BAC) is leading financials lower Tuesday following a downgrade by Citigroup earlier.
Citi lowered its rating on BofA from Buy to Neutral, while increasing its price target from $8 to $8.50.
The firm citing the recent run-up in the share price; BofA is up about 48 percent for the year and above $8 for the first time since last August. The Citi analyst noted the recent end to a years-long prove of mortgage servicers, which alleviates at least one overhang on BofA, as well as a recently issued solid quarterly report which impressed investors.
Despite the good, the Citi analyst said investors shouldn't rush into BofA quite yet as there are still more issues left to sort out. His Neutral rating is an outlook for the rest of 2012, saying there are no near-term catalysts which he sees driving shares higher.
Finally, Citi's analyst has a 2012 EPS target of 50 cents for BofA, below the 71 cents expected on the Street. On the call, the analyst commented, "BAC's recent outperformance reflects the market's increased comfort with its capital position, but at these levels we believe investor focus will shift to earnings, which have been weak."
Shares are off 2.9 percent Tuesday.
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Citi lowered its rating on BofA from Buy to Neutral, while increasing its price target from $8 to $8.50.
The firm citing the recent run-up in the share price; BofA is up about 48 percent for the year and above $8 for the first time since last August. The Citi analyst noted the recent end to a years-long prove of mortgage servicers, which alleviates at least one overhang on BofA, as well as a recently issued solid quarterly report which impressed investors.
Despite the good, the Citi analyst said investors shouldn't rush into BofA quite yet as there are still more issues left to sort out. His Neutral rating is an outlook for the rest of 2012, saying there are no near-term catalysts which he sees driving shares higher.
Finally, Citi's analyst has a 2012 EPS target of 50 cents for BofA, below the 71 cents expected on the Street. On the call, the analyst commented, "BAC's recent outperformance reflects the market's increased comfort with its capital position, but at these levels we believe investor focus will shift to earnings, which have been weak."
Shares are off 2.9 percent Tuesday.
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