Morgan Stanley Maintains Overweight on Bank of America Corporation, Changes PT to $21.00

In a report published Thursday, Morgan Stanley analyst Betsy Graseck maintained Overweight on Bank of America Corporation

, changing its price target to $21.00. According to the report, 4Q shows BAC's asset sensitivity and mgmt's ability to successfully deliver on promised expense saves. The analysts believe BAC can drive 90 percent EPS growth in 2015 to $1.95 vs. $1.03 in 2013 on shrinking legacy and litigation costs. A 22 percent upside to their new $21 price target is seen as the stock re-rates on rising EPS. “4Q's results were strong with BAC raising its NII guidance and delivering $400m decline in LAS costs,” the report noted. “Why lower fwd EPS? $2b of the beat was lower litigation expenses; we are pushing this $2b into 14/15. Next catalyst is March CCAR. We model $5b buyback (unchgd from 2013), and 4c divi hike to 5c per quarter.” BAC closed Wednesday at $17.15.