Bank of America Singled Out, Downgraded by Atlantic
On Monday, Atlantic Equities downgrades shares of Bank of America (NYSE: BAC) from Overweight to Neutral and lowered the price target from $20 to $18.50. Shares closed down 1.08 percent to $17.37 in Monday's trading.
The downgrade was due to poor stress-test results, softness in mortgage revenue, and higher legal costs.
Atlantic cut earnings per share estimates for investment banks, with Bank of America's EPS cut ranking in the middle of the pack.
However, the Atlantic note also identified Wells Fargo (NYSE: WFC) and US Bancorp (NYSE: USB) as a “simple and safe” way to play rising U.S. interest rates. The firm upgraded shares of both Wells Fargo and US Bancorp from Underweight to Neutral.
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