Barron’s business weekly said on Sunday that Bank of America Corp (NYSE: BAC)’s stock has a strong potential upside after declining in value since the recent peak in April, citing the company’s plans to end its reliance on fees and charges.
The publication noted that investors have become much less bullish about the largest bank in terms of assets and deposits. Last week, Bank of America Corp (NYSE: BAC) shares traded at $14.00, down from its $19.50 peak in April. Bank of America Corp (NYSE: BAC) has seen a bigger drop in its share price than rivals Citigroup, Inc (NYSE: C), JPMorgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC).
“There’s a lot of upside in Bank of America,” said Barron’s, quoting Sanford Bernstein analyst John McDonald as saying. McDonald, who has a $20.00 price target on Bank of America Corp (NYSE: BAC)’s stock, said that he thinks tangible book value could grow to $15 per share by the end of next year.
The publication said that the industry sell-off appeared to be fueled by increasing investor pessimism about earnings power because of weak commercial loan demand, tightening interest margins and regulatory reform.
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Banking, Global Markets, Global Wealth & Investment Management (GWIM), with the remaining operations recorded in All Other. On January 1, 2009, the Company completed the acquisition of Merrill Lynch.
Shares of Bank of America Corp (NYSE: BAC) traded up 2.85% on Monday ending at $14.44
