Bank of America (BAC) To Benefit From 4Cs
Analysts at CLSA Asia Pacific Markets maintain their "outperform" rating on Bank of America (NYSE: BAC), while raising their estimates for the company. The target price for BAC has been raised from $19 to $20.
According to CLSA Asia Pacific Markets, “Bank of America benefits from an attractive franchise, several earnings levers, and near-term Credit relief (more moderation), Capital markets exposure (lower rates for longer), Country risk (PIIGs on sidelines for now), and Congress (watered down Senate bill), or the "4 Cs."
“Capital markets-sensitive activities (trading, retail brokerage, asset management) should be up sequentially, though they are expected to be down year-over-year. Linked-quarter results should benefit from the on-going accommodative rate environment as well as higher global asset values… We expect Wealth & Investment Management revenues to be up 10% core (linked) given higher average AUM and a mix shift to higher-yielding assets and investment services,” the analysts add.
CLSA Asia Pacific Markets has raised its EPS estimate for 2010 from $1.30 to $1.35.
