FBR Capital Remains Bullish as Bank of America's (BAC) 4Q was Weighted by U.K. Tax Charges
FBR Capital reiterated an Outperform rating and $20.00 price target on Bank of America (NYSE: BAC) following the company's 4Q earnings report. BAC's results were weighed on by U.K. tax charges, FAS 91, and ongoing litigation costs. Reported GAAP EPS of $0.28 and estimated operating EPS of $0.34 were in line with FBR expectations. FBR continues to believe that the company represents an attractive risk/reward profile.
Analyst Paul Miller commented, "Bank of America reported an in-line quarter in a tough market driven by good balance sheet/core net interest income growth and in-line fees and expenses, with some one-time items weighing on results. We continue to believe the company represents an attractive risk/reward profile given a projected meaningful upward trajectory in earnings and what we believe is manageable further exposure to energy. Following 4Q15 earnings, we are maintaining our FY16 and FY17 EPS estimates of $1.65 and $1.80."
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Shares of Bank of America closed at $14.24 yesterday.