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 to Keep On Rising in 2013: Analyst

NEW YORK (TheStreet) -- Bank of America (JPM) should see a significant benefit from a stable net interest margin and housing recovery in 2013, according to JPMorgan Chase analyst Vivek Juneja.

In his fourth-quarter earnings preview for large-cap banks, Juneja on Friday reiterated his "Overweight" rating for Bank of America and raised his price target for the company's shares to $13 from $11.50, implying 23% upside from Thursday's closing price of $10.54. A stellar 91% year-to-date through Thursday's close followed a 58% decline in 2011, so the shares were still down 20% from the end of 2010.

The analyst raised his 2013 earnings estimate for Bank of America by four cents to $1.06 and increased his 2014 EPS estimate by a nickel to $1.37. Juneja said his rating reflected "significant benefit from potential housing market recovery, potential for significant increase in normalized earnings, ongoing improvement of capital levels, relatively attractive valuation, and position as a leading retail and commercial banking franchise in the US." Bank of America's cost-cutting program and "some good progress on mortgage related issues" were also cited by the analyst.

Juneja cut his price targets for six of the nine large-cap banks he covers. Aside from Bank of America, the only bank for which JPMorgan's price target was raised, was Citigroup (C), with the target increasing to $43 from $41, implying 15% upside from Thursday's closing price of $37.29. Citigroup's shares were up 43% year-to-date, following a 44% decline during 2011. The shares were still down 21% from the end of 2010.

Juneja maintained his neutral rating for Citigroup, saying that the company "has an attractive franchise with good long-term growth opportunities in emerging markets and should also have good capital return potential over time as capital gets freed up from Citi Holdings," but that "emerging markets growth outlook is slowing near-term and capital return likely to be muted especially with annual stress tests" by the Federal Reserve.

Citi Holdings is the subsidiary into which Citigroup's noncore assets have been place, as part of former CEO Vikram Pandit's "good bank/bad bank" strategy to right-size the company's balance sheet and boost capital ratios. This strategy was accelerated last week along with other major initiatives to cut expenses, by new Citigroup CEO Michael Corbat.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,070.75 -8.82 -0.05%
S&P 500 2,000.35 +3.61 0.18%
NASDAQ 4,572.5560 +14.8610 0.33%

Brokerage Partners

Rates from Bankrate.com

  • 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