This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank of America Among 4 Bank Downgrades by Evercore

Stocks in this article: BAC FHN STI ASBC HBAN

NEW YORK ( TheStreet) -- Bank of America (BAC) was downgraded Friday by Evercore, part of a broad industry review by bank analysts at the investment bank.

Citing the 73% surge in Bank of America stock and a valuation that is "less compelling," Evercore analyst Andrew Marquardt lowered the banking giant to equal weight from overweight. He noted that while Bank of America has closed the gap with Citigroup (C) on various metrics, it still trades at a discount to other large-cap peers. However, he argues a discount is warranted, given "lower returns and lower confidence in ultimate earnings power."

Nonetheless, Marquardt likes Bank of America longer term, arguing it has done a solid job of shoring up its capital base. Bank of America shares were flat in early trading Friday.

Noting bank outperformance year to date and a less compelling valuation, Evercore's analysts "remain positive on the sector longer-term as we still see more upside than downside risk." Top picks include JPMorgan Chase (JPM), Wells Fargo (WFC), Comerica (CMA), Zions Bancorp (ZION), Synovus (SNV).

Other moves by Evercore analysts included downgrades to SunTrust (STI), First Horizon National (FHN)and Associated Bancorp (ASBC)and an upgrade to Huntington Bancshares (HBAN)

Marquardt's downgrade to Associated to underweight from equal weight cited "mixed earnings power and valuation." Nonetheless, he believes "capital remains strong," and he sees a possibility of share buybacks.

In raising Huntington to equal weight from underweight, Marquardt cited improved earnings and "greater confidence in ability to deploy excess capital," following recent regulatory stress tests by the Federal Reserve.

Marquardt also noted Huntington shares trade at just over 10 times 2013 earnings versus a 12.7 multiple for peers. Huntington shares were slightly higher in early trades Friday.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.13 +48.24 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs