Bank of America
Bank of America's share have now returned 56% year-to-date, following a 58% decline during 2011.
The shares trade at just 0.7 times the company's reported Dec. 30 tangible book value of $12.95, and at eight times the consensus 2013 EPS estimate of $1.06.
Bank of America is slated to report its first-quarter results on April 19. The consensus among analysts is for the company to post first-quarter earnings of 12 cents, declining from fourth-quarter earnings of 15 cents and a profit of 17 cents during the first quarter of 2011.Guggenheim Securities analyst Marty Mosby on Wednesday raised his rating for Bank of America to buy from neutral, while maintaining his price target of $11. He cited valuation as the main motivator for the upgrade, saying that the shares had "traded down 15%, since peaking at $10 following the company's successful result from the Federal Reserve's annual stress tests in March, creating 29% upside potential to our price target, which we believe, even with BAC's heightened risk profile, justifies a buy rating." Mosby is out in front of the consensus, estimating the bank will post a profit of 20 cents a share in the March quarter. Mosby's $11 price target for Bank of America "is based on taking BAC's projected year-end 2013 tangible book value per share of $15 and netting out our worst-case loss expectation of $70 billion, or $4 unfavorable impact to tangible book value (75% of the recent Fed Stress Test losses)."
Philip van Doorn. To follow the writer on Twitter, go to http://twitter.com/PhilipvanDoorn.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV