Market Overview

Nomura Initiates Coverage on Bank of America

Related BAC
Mcclatchy Amends Credit Pact With Bank Of America
Fast Money Picks For October 17: Google, Bank Of America, Ambac Financial
Weak Economic Data Slams Wall Street (Fox Business)

In a report published Thursday, Nomura analyst Steven Chubak initiated coverage on Bank of America (NYSE: BAC) at Buy, with a $19.00 price target.

According to the report, multi-year capital / cost initiatives have prepared BAC for a tougher capital regime, and its strong position supports meaningfully higher payouts vs. peers.

“ BAC's current business mix, improving efficiency, and higher rate sensitivity should support ~15% mid-cycle returns (on required capital) by 2016. Legal costs should remain elevated, but analysis suggests BAC is only moderately under-reserved for remaining Private Label exposure,” the report said.

Some highlights from the report included:

-Long-term ROE potential of ~15% supports TP of $19, or 14% potential upside. -FY13E EPS at $0.89. -FY14E EPS at $1.27.

BAC closed Wednesday at $16.70.

Latest Ratings for BAC

DateFirmActionFromTo
Oct 2014FBR CapitalUpgradesMarket PerformOutperform
Oct 2014UBSUpgradesNeutralBuy
Sep 2014Goldman SachsUpgradesNeutralBuy

View More Analyst Ratings for BAC
View the Latest Analyst Ratings

Posted-In: Nomura Steven ChubakAnalyst Color Initiation Analyst Ratings

 

Related Articles (BAC)

Around the Web, We're Loving...

Get Benzinga's Newsletters