Not all analysts are in agreement. In a Jan. 31 report, Stifel Nicholas analyst Christopher Mutascio argued "normalized earnings" for Bank of America--which he expects it will reach in 2014--is $1.14 per share, down from his previous estimate of $1.85. The biggest driver of the downward revision comes from Mutascio's expectation of lower fee income on a drop in equity investment gains and reduced investment banking and trading profits.
And Bove has been too optimistic too early on Bank of America in the not-too-distant past. In May of 2010, for example, he argued Bank of America shares, which were worth $15.40 at the time, would hit $99.31 by 2015. In that same interview , he argued Citigroup (C) would hit $24.75 in 2015, which, since the prediction came before the bank's one for 10 reverse split, would now equate to $247.50.
Seven months later, Bank of America shares had fallen to about $12.50 per share, but Bove predicted they would rise to $32 in about three years from that time, or by December 2013.
-- Written by Dan Freed in New York. Follow this writer on Twitter.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV