UPDATE: Bank Of America Initiates Coverage On RCS Capital On Brokerage Firm In Transition

In a report published Tuesday, Bank of America analyst Michael Carrier initiated coverage on

with a Neutral rating and $24.00 price target. In the report, Bank of America noted, “We are initiating coverage of RCS Capital (RCAP) with a Neutral rating and $24 PO. Our ‘14 and ‘15 adjusted EPS estimates are $2.22 (1Q14 was prior to dilution) and $1.95, respectively. RCAP is a legacy wholesale distributor that is transitioning and expanding its business model into independent retail advisory through multiple acquisitions, including Cetera. While the earnings growth has been attractive and the valuation is reasonable, given uncertainty around the growth outlook, retail integrations ahead, and some structure and regulatory risks, we initiate at Neutral.” RCS Capital Corp. closed on Monday at $22.22.