"Multi-year capital/cost initiatives have prepared BAC for a tougher capital regime and its strong position supports meaningfully higher payouts versus peers, in our view," wrote analyst Steven Chubak in the report.
Nomura forecasts earnings per share of $1.27 in 2014 and $1.51 a share in 2015. Analysts polled by Thomson Reuters anticipate $1.32 a share over 2014 and $1.59 a share the year after.
By late afternoon, shares were up 1.3% to $16.80.
TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by a few notable 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 solid stock price performance, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- This stock has managed to rise its share value by 33.83% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BAC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BANK OF AMERICA CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, BANK OF AMERICA CORP turned its bottom line around by earning $0.25 versus -$0.02 in the prior year. This year, the market expects an improvement in earnings ($0.88 versus $0.25).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Financial Services industry. The net income increased by 634.4% when compared to the same quarter one year prior, rising from $340.00 million to $2,497.00 million.
- BAC's revenue growth trails the industry average of 13.4%. Since the same quarter one year prior, revenues slightly increased by 0.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- You can view the full analysis from the report here: BAC Ratings Report