UPDATE: Bank of America Raises PO to $16 on Fifth Third Bancorp Following Stress Test Pass

Bank of America reiterated its Buy rating on Fifth Third Bancorp

and raised its price objective from $15 to $16 a share. Bank of America noted, "FITB announced that the Fed did not object to its plan to repurchase $600mn in common stock between now and the end of 1Q13. As a result, we raise our estimates as follows: 1) 2012E to $1.55 from 1.54, 2) 2013E to $1.46 from $1.42; and 3) 2014E to $1.46 from $1.42. As a result, we are increasing our PO to $16 from $15, partly due to upwardly revised estimates. Additionally, given that the approval removes some of the capital return overhang on the stock, FITB's implied value on a DCF basis also improves." Fifth Third Bancorp closed at $14.39 on Tuesday.