Publish date:

Countrywide Upgraded at BofA

But the firm trims its price target.
Author:

Banc of America Securities upgraded

Countrywide

(CFC)

Friday as Wall Street continues to watch the struggling mortgage lender with an eagle eye.

TheStreet Recommends

The firm boosted the stock to neutral from sell, saying Thursday's announcement that Countrywide had tapped an $11.5 billion bank line should give the company time to weather the storm in the secondary markets for mortgage securities.

Countrywide shares plunged 18% Wednesday on a Merrill Lynch downgrade that raised the specter of bankruptcy, then dropped another 11% Thursday on the credit facility news. The stock traded at a 52-week low of $15 Thursday before recovering to close at $18.95.

Despite the upgrade, Banc of America cut its price target to $21 from $31.