Evercore ISI Reiterates Outperform Rating on Bank of America (BAC)

Evercore ISI analyst Glenn Schorr reiterated an Outperform rating and $48.00 price target on Bank of America (NYSE: BAC).

The analyst comments "Good enough quarter and a show of capital, reserve & liquidity force for BofA with the shares up 3.6%, outpacing the index by ~150bps as BAC got a little more of the flight to quality love that we felt was missing lately. For 1Q, the beat came from a little higher trading & mostly due to a lower tax rate as NII, investment banking and expenses were relatively in line. While the P&L was fine & in line and BofA continues to methodically add organic growth across each of its businesses, mgmt. took a little extra time to talk about the safety & soundness overall at BofA highlighting the 110bps of XS capital on its stable balance sheet (see fig 4), the higher reserves to support a potentially worse economic backdrop (now assumes a 6% unemployment rate, 7.4% in Cards), and how its conservative underwriting over the past 10 years should help BofA outperform and allow them to keep investing for growth and support clients even if the economy dips. While we feel there’s work to be done in terms of closing the return gap to best in class peers (part NIM part trading), we think BofA is a reasonably priced and very consistent & conservatively run bank."

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 $37.99 yesterday.

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