Wells Fargo Says BofA (BAC) Reshuffling Not Likely to Alter Direction, Suggests Low Chance of a Merrill Spin-Off
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Price: $64.49 +0.62%
Rating Summary:
26 Buy, 18 Hold, 2 Sell
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
26 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Analysts at Wells Fargo commented on the management shake-up news at Bank of America (NYSE: BAC).
In the move, David Darnell and Tom Montag have been named co-chief operating officers. Joe Price, head of Consumer and Small Business Banking, and Sallie Krawcheck, head of Global Wealth & Investment Management, were let go.
Wells Fargo's analyst said while the moves come as a surprise, they are unlikely to materially alter the company's recent strategic direction. "The moves
place two of the executives running two of the more successful businesses in
positions of greater responsibility and the exits of long-time BAC executive and
former CFO Price and industry veteran Krawcheck suggest that "Project New
BAC" cost-cutting program extends to the top echelons of the company. Still, the
changes are unlikely to alter BAC's overall strategy, in our view."
The firm also said the reorganization re-emphasizes the low probability of a "spin-off" of Merrill Lynch. This is due to efforts to cross-sell products to BofA's commercial and retail customers and the profitability the former Merrill Lynch operations currently generates.
The firm maintained their Market Perform rating and $7-$8.50 price target on BofA.
For more ratings news on Bank of America click here and for the rating history of Bank of America click here.
Shares of Bank of America closed at $6.99 yesterday.
In the move, David Darnell and Tom Montag have been named co-chief operating officers. Joe Price, head of Consumer and Small Business Banking, and Sallie Krawcheck, head of Global Wealth & Investment Management, were let go.
Wells Fargo's analyst said while the moves come as a surprise, they are unlikely to materially alter the company's recent strategic direction. "The moves
place two of the executives running two of the more successful businesses in
positions of greater responsibility and the exits of long-time BAC executive and
former CFO Price and industry veteran Krawcheck suggest that "Project New
BAC" cost-cutting program extends to the top echelons of the company. Still, the
changes are unlikely to alter BAC's overall strategy, in our view."
The firm also said the reorganization re-emphasizes the low probability of a "spin-off" of Merrill Lynch. This is due to efforts to cross-sell products to BofA's commercial and retail customers and the profitability the former Merrill Lynch operations currently generates.
The firm maintained their Market Perform rating and $7-$8.50 price target on BofA.
For more ratings news on Bank of America click here and for the rating history of Bank of America click here.
Shares of Bank of America closed at $6.99 yesterday.
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