NEW YORK (TheStreet) -- Shares of Bank of America Corp. (BAC) closed up 1.24% at $17.93 after Deutsche Bank reiterated its "buy" rating and named the bank as one of its "Top Picks" in a three year outlook on U.S. Large Cap Banks.
"We continue to see good upside given EPS power should have an upward trajectory and BAC is among the most leveraged to rising interest rates/a stronger U.S. economy," Deutsche Bank said.
Consensus 2015E implies just 2% growth off of core 3Q14, which seems achievable given further declines in legacy mortgage costs, analysts noted.
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Lastly, with the bulk of its mortgage issues behind it, Deutsche Bank believes management can increasingly focus on core businesses, likely driving incremental revenues and cost saves.
Deutsche Bank EPS estimates for Bank of America for 2015 and 2016 are $1.46 and $1.77 per share, respectively.
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 a number of 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 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."