Bank of America Isn't Getting Enough Credit! (BAC)
February 22, 2010 10:32 AM
Analyst David A. George, CFA at Baird is coming out with a report today stating that Bank of America (NYSE: BAC) is not getting enough credit for its Merril Lynch acquisition. Shares of Bank of America (BAC) are up $0.25 to $16.13 per share.
Mr. George has reiterated his Outperform rating and $22 price target on BAC. This price target is over 36% higher than the current price levels on Bank of America.
He defends his stance, "Reiterate Outperform and $22 target price, BAC getting little credit for MER. We reiterate our Outperform rating on BAC, and continue to find the risk/reward to be attractive at current prices as the stock appears inexpensive on BAC’s normalized earnings power of ~$2.70 per share. The shares also look compelling on a SOTP basis, as it appears to us that the value of the MER franchise is not reflected in the stock."
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