Wednesday's bank stock loser was Bank of America ( BAC), with shares declining 3% to close at $7.77, after Sanford Bernstein analyst John McDonald cut his rating on the shares to "Market Perform" from "Outperform."

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Bank of America's shares have returned 40% year-to-date, after falling 58% last year.

The shares trade for 0.7 times tangible book value, according to HighlineFI, and for 11 times the consensus 2012 earnings estimate of 71 cents.

McDonald's price target for Bank of America is $9.00. The analyst downgraded the shares "after a strong YTD rally appears to have taken capital raise fears out of the stock" and while he continues to see long-term upside for the shares, he believes "it will take time for BAC's earnings power to recover amid low interest rates, loan runoff, and a long tail to elevated mortgage-related expenses.

McDonald estimates that Bank of America will earn 65 cents a share in 2012, followed by EPS of $1.15 in 2013.

Interested in more on Bank of America? See TheStreet Ratings' report card for this stock.


-- Written by Philip van Doorn in Jupiter, Fla.

To contact the writer, click here: Philip van Doorn.

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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

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