UBS Upgrades Bank of America (BAC) to Buy

UBS upgraded Bank of America (NYSE: BAC) from Neutral to Buy and raises their price target to $20 (from $18).

Analyst Brennan Hawken commented, "We are upgrading BofA today, as we believe the recent market action in the stock has created an attractive entry point. Even if BofA does not benefit from rate tailwinds, we get to about $1.40 in earnings for 2016, which would mean that at roughly 11.5x, the market is currently pricing in very little rate benefit for BofA and so downside seems limited to us. Further, BofA is the most domestically focused money center bank so concerns over slowing EM growth should have less of an impact on BofA than its peers. Also, its deposit base has the highest proportion of core deposits, which is the most stable, highest quality, lowest beta deposit base of any bank we cover."

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 $15.29 yesterday.

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