UPDATE - UBS Initiates Coverage on Bank of America (BAC) with a Neutral; Getting it Back on Track

UPDATE - UBS initiates coverage on Bank of America (NYSE: BAC) with a Neutral. PT $13.50.

UBS analyst says, "The improving economy will undoubtedly benefit all of the stocks in our coverage universe. However, BAC’s stock price performance versus peers will ultimately be determined by management’s ability to resolve legacy issues in a timely manner while staying focused on execution. Our Neutral rating reflects our concern with legacy issues holding back results longer than expected."

"Unlike some peers, BAC is not yet in a position to return capital to its shareholders in a meaningful way. We believe its outsized exposure to rep & warranty claims is a major reason for the Fed’s objection. Despite this risk, we believe BAC will ultimately be in a better position to return capital via dividends and repurchases; however, we believe such capital management may take longer than expected."

To see all upgrades/downgrades on shares of BAC, visit our Analyst Ratings page.

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