This Day On The Street
Continue to site
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

Bank of America Receives 6th Downgrade of 2012

NEW YORK ( TheStreet) -- Bank of America (BAC - Get Report), which has seen its shares rise 78.6% in 2012 following a dismal 2011, received its sixth downgrade of the year on Tuesday.

Robert Baird analyst David George was the latest analyst to call the cops on Bank of America's party, dropping his recommendation to "neutral" from "outperform." Nonetheless, George lifted his 2012 earnings estimate to 65 cents per share from 50 cents, primarily due to expectations of a strong first quarter.

Explaining the reason for the downgrade, George joined several other analysts in arguing Bank of America must show stronger earnings potential to continue its outperformance.

"We attribute the majority of the stock's outperformance to the notable improvement in capital levels," George stated in his report.

George favors JPMorgan Chase (JPM - Get Report) to Bank of America.

"While [JPMorgan] has also had a nice move of late and doesn't have the risk/reward it did to start the year, we believe [JPMorgan] shares are more inexpensive on 2013 EPS ex-reserve release, and there is a much clearer and less risky path to mid-cycle or normalized earnings," he wrote.

In addition to its six downgrades, Bank of America has received one upgrade in 2012--from Morgan Stanley analyst Betsy Graseck. However, while Graseck deserves kudos for raising her Bank of America recommendation to "overweight" on Jan. 19 when the shares were worth $6.80, her decision to leave her price target unchanged at $7 now looks less prescient.

By contrast, three of the six analysts who downgraded Bank of America, including George, lifted their target prices at the same time as they lowered their recommendation. Not one of the seven analysts who have shifted their recommendation has a target price higher than $10, however, according to Bloomberg data.

Bank of America shares closed at $9.93 on Monday but were lower in premarket trading less than two hours before Tuesday's open. JPMorgan shares, meanwhile, were set to open flat to slightly higher on Tuesday.

-- Written by Dan Freed in New York.

Follow me on Twitter

Readers Also Like:

>> Bank Watchdog Is a Paper Tiger

>> 18 Dividend Stocks That Will Outlive the Hype

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.56 0.00%
JPM $63.20 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs