UPDATE: Credit Suisse Downgrades Bank of America to Neutral on Valuation

Credit Suisse downgraded Bank of America

from Outperform to Neutral and raised the price target from $11.00 to $12.00. Credit Suisse noted, ". Current valuation appears to be ahead of the company's near to intermediate-term performance and appears to be discounting significantly faster improvements in efficiency than we would be expecting. At its current valuation, the shares appear to be discounting at least a 16% improvement in costs over the next year vs. our estimate of 10%. Despite the announced mortgage servicing sales, we think it will take until 2014 before the full run-rate of expense saves. Separately, we think it will be hard for Bank of America to grow revenues faster than the "average" bank." Bank of America closed at $11.98 on Tuesday.