Bank of America (BAC) Stock Higher, Credit Suisse Reduces Earnings Estimates

Bank of America (BAC) 2016 and 2017 earnings estimates were lowered this morning at Credit Suisse 'to reflect the cost of a lower for longer scenario.'
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Bank of America (BAC) - Get Report are up 0.51% to $12.93 in early afternoon trading as the company's earnings estimates were lowered this morning for 2016 and 2017 to $1.22 from $1.30 and to $1.45 from $1.55, respectively, at Credit Suisse

The firm lowered the estimates "to reflect the cost of a lower for longer scenario," according to the analyst note. 

Credit Suisse used the base case assumptions of "lower long term interest rates and slower GDP growth" to determine the estimates for the Charlotte, NC-based banking and financial corporation. 

Despite the lower estimates, Credit Suisse continues to recommend the stock with an "outperform rating" and $18 price target.

"Beyond a better macro backdrop, organic revenue growth, expense initiatives and evidence of effective risk management are critical to sustained share price out-performance," the firm said. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate BANK OF AMERICA CORP as a Buy with a ratings score of B-. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

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