Deutsche Bank Lifts Price Target on BofA (BAC), Keeps Hold Rating On Remaining Uncertainty

Deutsche Bank raised their price target on Bank of America (NYSE: BAC) from $7.50 to $9, which assumes a 15% discount to the firm's target P/E of 9.5x for the overall group given still some uncertainty related to capital, mortgage issues and EPS power. The firm maintained their Hold.

The firm is increasing 2012E (to $0.70 from $0.59) and 2013E (to $1.12 from $1.08) to reflect expectation for higher 1Q12 capital markets revenue and tweaks to their NIM outlook for 2012 and 2013.

"We also no longer assume another $5b of TruPs are exchanged into common as capital levels continue to build faster than we previously expected and CCAR results were better than expected. However, we do continue to believe some sort of capital boost (either common or preferred) is possible to repay the $5b preferred equity investment by Buffett (which won’t count as Tier 1 capital starting in 2013). "

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 $9.53 yesterday.

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