Nomura Securities Q2 Review on Bank of America (BAC); Capital Ratios Now on Par With Peers
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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 $8.50.
Analyst, Glenn Schorr, said, "BAC showed strong progress on the capital front (Basel 3 T1C basically in line with peers), managed expenses well (with more to come), and saw credit continue to improve (provision expense was its lowest level since 1Q07, with a $1.85bn reserve release). Unfortunately, core earnings power remained sluggish (we estimate core PPNR of around $6bn and core EPS of $0.13) and the low rate backdrop continues to pressure net interest revenue (adjusted NIM -10bp q/q). BAC reported an estimated 8.1% Basel 3 T1C ratio, and while there was some confusion around whether BAC’s ratio is comparable to what peers reported earlier this week, we think BAC, Citi (NYSE: C), Goldman (NYSE: GS), and JPMorgan (NYSE: JPM) are all clustered around the 7.9% range on a fully–loaded basis. FY12 EPS from $0.57 to $0.60."
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 $7.53 yesterday.
Analyst, Glenn Schorr, said, "BAC showed strong progress on the capital front (Basel 3 T1C basically in line with peers), managed expenses well (with more to come), and saw credit continue to improve (provision expense was its lowest level since 1Q07, with a $1.85bn reserve release). Unfortunately, core earnings power remained sluggish (we estimate core PPNR of around $6bn and core EPS of $0.13) and the low rate backdrop continues to pressure net interest revenue (adjusted NIM -10bp q/q). BAC reported an estimated 8.1% Basel 3 T1C ratio, and while there was some confusion around whether BAC’s ratio is comparable to what peers reported earlier this week, we think BAC, Citi (NYSE: C), Goldman (NYSE: GS), and JPMorgan (NYSE: JPM) are all clustered around the 7.9% range on a fully–loaded basis. FY12 EPS from $0.57 to $0.60."
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 $7.53 yesterday.
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