Nomura Securities Maintains a 'Neutral' on Bank of America (BAC); Q1 Review: Seeing Progress

Nomura Securities maintains a 'Neutral' on Bank of America (NYSE: BAC) price target of $10.00.

Analyst, Glenn Schorr, said, "Excluding the noise, there was improvement in core earnings this quarter, thanks to a rebound in trading, some NIM improvement and good expense trends. The good capital-build story also continued (B1 T1c up 92 bps), and management now expects B3 T1C to be >7.5% at YE12 (up from
7.25%-7.5%). But mortgage slipped this quarter, as the loss in consumer real estate continued and the company lost share due to the exit from the correspondent business – originations fell 73%. All in, we think core earnings were in the range of $0.07-$0.25/share depending on what you include. The $0.15/share in reserve release and $0.07/share of CVA drive the wide range. Stock should do OK, but don’t get too excited as the earnings build will take time."

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 $8.92 yesterday.

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