Raymond James Raises PT on Bank of America Following EPS beat

In a report published Wednesday, Raymond James analyst Anthony Polini raised the price target on Bank of America (NYSE: BAC) from $17.00 to $20.00 following the EPS beat. Polini commented, "We reiterate our Outperform rating on BAC given its above-average EPS growth potential, relatively attractive valuation, and leverage to rising rates and an improving economy." The analyst noted the company's reported fourth quarter EPS of $0.29, or $0.32 excluding extraordinary items. Raymond James' estimate was $0.27 versus the Street's average of $0.26. The analyst highlighted strong LQ growth in investment banking, net interest income, and investment/ brokerage. Raymond James included other highlights in his note including, "Strong core fee income growth and higher-than-expected net interest income and NIM; a lower-than-expected provision with ample excess reserves still on the balance sheet; the aforementioned LQ declines in NCOs and nonaccruals; and strong capital ratios as evidenced by an estimated Basel III Tier 1 common ratio of 9.96% at December 31, 2013." Polini maintained his 2014 estimated EPS of $1.30 and 2015 estimated EPS of $1.62, given a more cautious outlook. Bank of America closed at $17.15 on Wednesday. Shares have traded as low as $16.99, down 0.94%.