NEW YORK (
Bank of America
lost ground Monday despite a flurry positive analyst notes on the bank's first-quarter performance.
on Friday posted a first-quarter profit of $3.2 billion, or 28 cents a share, on revenue of $31.96 billion. The bank saw stabilizing credit conditions, which prompted positive comments from bank analysts.
FBR Capital Markets analyst Paul Miller reiterated his outperform rating on the stock and bumped his price target to $22 from $20, saying that the bank's fixed income performance was much stronger than he had anticipated.
Rochdale Securities analyst Dick Bove upped his price target for Bank of America to $27.50 from $21, noting the likelihood of lower loan losses, the ability of the balance sheet to support much higher revenues and earnings, and the strength of
Elsewhere, Citigroup upped its price target for Bank of America to $26 from $23, and both Barclays and UBS raised their stock price target to $21.
Like many other banks, Bank of America shares were pressured by the continued fallout from the fraud charges brought against
Securities and Exchange Commission
The SEC is now is investigating whether mortgage deals set up by other big Wall Street firms may have misled investors, according to a report in
The Wall Street Journal
Meanwhile, FBR dropped Goldman Sachs from its Top Picks list due to the SEC's actions, although the firm still holds an outperform rating on the stock.
Goldman Sachs, which dropped 13% Friday, was down 1% to $159.04.
said it had net income of $4.4 billion, or 15 cents a share, compared with the average estimate that the bank would break even, according to Thomson Reuters. Citigroup said it had revenue of $25.4 billion, above the $20.8 billion consensus target.
Citigroup said net credit losses fell by $1.6 billion, or 16%, sequentially to $8.4 billion. Provisions for credit losses and for benefits and claims fell by $2.4 billion, or 22%, sequentially to $8.6 billion.
Shares of Citigroup were among few winners of the financial sector Monday, rising 5.8% to $4.82.
Most other U.S. bank stocks were trading mixed.
fell 1% to $45.10, while
advanced 0.3% to $32.64 and
tacked on 0.1% to $29.19.
reported first-quarter earnings of $1.15 a share, which was better than the Thomson Reuters average estimate for a profit of 99 cents a share.
M&T's provision for credit losses was $105 million in the quarter, down from $158 million and $145 million in the year-ago quarter and in the fourth quarter, respectively.
M&T Bank shares were down 0.2% to $84.06.
-- Written by Robert Holmes in Boston
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