Morgan Stanley Sees 'Inflection Point' at BofA (BAC) Approaching; Boosts FY12, FY13 Estimates

Morgan Stanley issued a research note Friday morning suggesting BofA (NYSE: BAC) is approaching an "inflection point." The firm highlighted declining mortgage costs moving forward, with the pace likely accelerating during the back half of next year.

Morgan Stanley said BofA shares are cheap trading at just 0.37x price/book and 0.57x price/tangible book.

The firm boosted its FY12 EPS estimate from 57 cents to 90 cents and its FY13 estimate from 91 cents to 99 cents. The Street is currently looking for BofA to report FY12 EPS of 55 cents and FY13 EPS of 95 cents.

Morgan Stanley reiterated an Equalweight rating.

The comments and estimates revisions following Q2 results from BofA on Wednesday of this week. The stock is down more than 8 percent since the report.

Visit our Analyst Ratings page to track all the market-moving analyst action on shares of BofA.

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