Bank of America Merrill Lynch analyst Erica Penala said in a report that Citigroup's results were a " clear standout," that implied "significant long-term capital return capacity." The analyst reiterated her "buy" rating for Citigroup, while raising her price target for the shares to $50.00 from $46.00.
Bank of America was also called a stress-test winner by FBR analyst Paul Miller, after the Federal Reserve said the bank would weather a severe recession with a minimum tier 1 common equity ratio of 6.8%, despite projected pre-tax losses of $51.8 billion. Bank of America's own stress tests -- using the same economic scenario as the Fed -- showed potential pretax losses of $43.8 billion, with a minimum Tier 1 common equity ratio of 7.7%.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts