UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Bank of America

In a report published Monday, Citigroup reiterated its Neutral rating on Bank of America Corp.

, and raised its price target from $8.50 to $10.00. Citigroup noted, “Heading into 3Q we expect BAC to post decent core EPS of $0.22, vs consensus estimates of $0.14. However, the reported number will be a little messy, coming in at breakeven for 3Q vs our prior estimate of $0.15 on DVA losses of $1.7 billion (-$0.13), an $800 mil charge for a UK tax change (-$0.06), mortgage repurchase reserves additions of $400 mil (-$0.03), and litigation expenses of $250 mil (-$0.02). We also trim our 2013 estimate from $0.90 to $0.80 vs consensus of $0.91, and 2014 from $1.20 to $1.15 vs consensus of $1.28 mostly to reflect a more conservative view of reserve releases and expenses.” Bank of America Corp. closed on Friday at $9.50.