Morgan Stanley Reiterates Overweight Rating for Bank of America (BAC)
Bank of America (NYSE:BAC)‘s stock had its “overweight” rating reiterated by equities researchers at Morgan Stanley in a research report issued on Thursday, AmericanBankingNews.com reports. They currently have a $20.00 price objective on the stock. Morgan Stanley’s price target points to a potential upside of 23.99% from the company’s current price.
The analysts wrote, “1Q’s results were in-line on a core basis excluding transient items. Why lower fwd EPS? Most of the headline miss was on higher legal costs, so we’re topping-up our legal reserve build estimate in anticipation of near-term settlements to largely resolve remaining legacy mortgage litigation. Despite the headline earnings loss, BAC improved its B3 standardized capital ratio by 20 bp q/q, narrowing the gap to 60 bp below with their B3 advanced ratio of 9.9% (BAC continues to provide best-in-class disclosure vs. peers on their reg cap ratios).”
Shares of Bank of America (NYSE:BAC) opened at 16.13 on Thursday. Bank of America has a 1-year low of $11.23 and a 1-year high of $18.03. The stock’s 50-day moving average is $16.90 and its 200-day moving average is $15.84. The company has a market cap of $170.5 billion and a P/E ratio of 17.86. Bank of America also saw a large decrease in short interest in the month of January. As of March 31st, there was short interest totalling 111,575,739 shares, a decrease of 6.6% from the March 14th total of 119,508,930 shares. Currently, 1.1% of the company’s shares are short sold. Based on an average daily trading volume, of 109,728,457 shares, the short-interest ratio is presently 1.0 days.
Bank of America (NYSE:BAC) last announced its earnings results on Wednesday, April 16th. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.30. The company had revenue of $22.80 billion for the quarter, compared to the consensus estimate of $22.38 billion. During the same quarter in the previous year, the company posted $0.20 earnings per share. The company’s revenue for the quarter was down 2.7% on a year-over-year basis. On average, analysts predict that Bank of America will post $1.08 earnings per share for the current fiscal year.
A number of other firms have also recently commented on BAC. Analysts at Jefferies Group cut their price target on shares of Bank of America from $20.00 to $18.50 in a research note on Thursday. Separately, analysts at Societe Generale reiterated a “buy” rating on shares of Bank of America in a research note on Tuesday, April 8th. They now have a $19.50 price target on the stock, down previously from $20.00. Finally, analysts at FBR Capital Markets reiterated a “market perform” rating on shares of Bank of America in a research note on Thursday, March 27th. One analyst has rated the stock with a sell rating, thirteen have assigned a hold rating and twelve have given a buy rating to the company. Bank of America presently has an average rating of “Hold” and an average price target of $16.90.
Bank of America Corporation (NYSE:BAC) is a bank holding company, and a financial holding company.
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