Dividend.com: Sit on Bank of America Nods

Bank of America Upgraded by Morgan Stanley and KBW

Bank of America(BAC Quote) caught two upgrades Thursday morning, one by Morgan Stanley, and another by Keefe, Bruyette & Woods.

Morgan Stanley raised its earnings estimates for the Charlotte-based banking giant, saying it expects BAC's banking and retail brokerage revenue to beat analyst estimates in the upcoming quarters. Morgan currently rates the stock as "Overweight," with a very high $32 price target. BAC shares closed Wednesday at $11.98.

Keefe, Bruyette & Woods also upgraded BAC Thursday, raising its rating on the stock to "Outperform." Keefe feels that the banker is currently undervalued, given its improved balance sheet due to funds raised from recent share offerings. Keefe set a $16.50 price target on the stock.

Bank of America shares rose 75 cents, or +6.3%, in morning trading Thursday.

The Bottom Line

We removed shares of BAC from our "Recommended" list back on Sept. 15, when the shares were at $33.74. We had the shares briefly on our list from the $32.23 price point. The company has a .33% dividend yield, based on last night's closing stock price of $11.98.

The stock has near-term technical support in the $7.50 price area. If the shares can firm up, we see overhead resistance around the $14 price level. We would still remain on the sidelines for now.

Bank of America is not recommended at this time, holding a Dividend.com DARS Rating of 3.0 out of 5 stars.

Qualcomm Raises Sales, Operating Income Forecast

Mobile phone component maker Qualcomm(QCOM Quote) on Thursday raised its third-quarter sales forecast, citing stronger demand for its mobile technologies.