Nomura Securities Maintains a 'Neutral' on Bank of America (BAC); Q3 Review
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Price: $64.49 +0.62%
Rating Summary:
26 Buy, 18 Hold, 2 Sell
Rating Trend:
Down
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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Nomura Securities maintains a 'Neutral' on Bank of America (NYSE: BAC) price target of $8.00.
Nomura analyst, Glenn Schorr, said, "Reported EPS of $0.56 vs. Our/Street estimates of $0.15/$0.28. While any beat is a welcomed event for a stock that has been through as much as BAC has, the headline number was filled with unsustainable items that moved in both directions, which collectively helped offset brutal trading results and a sizable drop in NIM. Nonetheless, there were positives to point to including: deposit growth, RWA reduction, tame expenses (and more saves to come), and improved credit. While we think the focus on cost containment (“New BAC”) gives some comfort that earnings may hold up, the litany of mortgage tail risks (AG settlement, FHFA, MBIA, Private label settlement), remain a legitimate headwind, in our view, which tempers the near-term outlook. Our 2011E goes from ($0.39) to $0.03."
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 $6.64 yesterday.
Nomura analyst, Glenn Schorr, said, "Reported EPS of $0.56 vs. Our/Street estimates of $0.15/$0.28. While any beat is a welcomed event for a stock that has been through as much as BAC has, the headline number was filled with unsustainable items that moved in both directions, which collectively helped offset brutal trading results and a sizable drop in NIM. Nonetheless, there were positives to point to including: deposit growth, RWA reduction, tame expenses (and more saves to come), and improved credit. While we think the focus on cost containment (“New BAC”) gives some comfort that earnings may hold up, the litany of mortgage tail risks (AG settlement, FHFA, MBIA, Private label settlement), remain a legitimate headwind, in our view, which tempers the near-term outlook. Our 2011E goes from ($0.39) to $0.03."
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 $6.64 yesterday.
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