NEW YORK (TheStreet) -- Shares of Bank of America Corp. (BAC) are higher by 1.06% to $16.19 in pre-market trading on Monday, following a ratings upgrade to "buy" from "neutral" at Goldman Sachs (GS) .
The firm said it raised its rating on the financial institution based on its belief investors can now focus on "meaningful improvement" in its business, now that the company's legal issues have been resolved.
Goldman also cited an improvement in earnings, less volatility in earnings, and its expectation that Bank of America's capital return gap will narrow, as reasons for the upgrade.
Goldman upped its price target on Bank of America to $19 from $17.
Separately, TheStreet Ratings team rates BANK OF AMERICA CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANK OF AMERICA CORP (BAC) a BUY. This is driven by multiple 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 expanding profit margins, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."