Bank of America
"BAC continues to make progress towards resolving its large mortgage issues, particularly involving Countrywide, although there is still work to be done," JPMorgan analysts wrote in a report Tuesday. "Given recent positive progress in resolving mortgage related issues as well as improving capital position, we remain positive on the stock longer-term in light of its valuation at 0.6x tangible book value."
Bank of America was upgraded to hold from sell by TheStreet Ratings."The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income," TheStreet Ratings wrote. "However, as a counter to these strengths, we also find weaknesses including generally poor debt management and a generally disappointing performance in the stock itself." Bank of America has an estimated price-to-earnings ratio for next year of 7.59; the average among its peers is 8.2. For comparison, JPMorgan Chase (JPM) has a lower forward P/E of 7.29 and Morgan Stanley's (MS) forward P/E is 7.87. Twenty-three of the 37 analysts who cover Bank of America rated it hold. Twelve analysts gave it a buy rating and two rated it sell. TheStreet Ratings gives Bank of America a C- grade. The stock has risen 47.12% year to date and is the best-performing stock in the Dow Jones Industrial Average year to date.
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