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Bank of America Estimates Cut

NEW YORK (TheStreet) -- Bank of America saw its earnings estimates cut by yet another analyst following a quarter in which the bank lost $8.8 billion, its largest in history.

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The latest analyst to reduce his estimates was Sanford Bernstein's John McDonald. McDonald cut his 2011 estimates for the bank to 43 cent per share loss from an 87 cent gain. McDonald's cuts put him near the low end of the range of the 27 analysts surveyed by Thomson Reuters. The analysts as a group are looking for a loss of 23 cents per share in 2011, with the most bullish predicting a 16 cent gain, and the biggest bear eyeing a 44 cent loss.

It seems likely, however, that many analysts still have yet to lower their estimates, since McDonald has been a Bank of America bull for quite some time. McDonald has had an "outperform" rating on Bank of America since at least Oct. 2, 2009, according to data from Bloomberg, though his target price has dropped steadily from 25, on that date, to its present level of 13. Despite his latest downward revision, McDonald made no change to his "outperform" recommendation or his $13 target price.

Bank of America's earnings, announced Tuesday of last week, had largely been preannounced by the bank June 29. Nonetheless, the bank's shares sold off further after the earnings release but then rebounded later in the week, along with shares of other large banks such as Wells Fargo (WFC), Citigroup (C) and JPMorgan Chase (JPM)

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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