S&P Maintains its BUY Rating on Bank of America

October 13 00:00 2011

NEW YORK, October 13, (RainbowNewsLine.com) – Analyst Erik Oja of S&P Capital IQ reiterates his BUY rating on the shares of Bank of America (NYSE: BAC), while reducing his estimates for the company. The target price is set to $10.

Analyst Erik Oja, in a research note published yesterday, mentions that S&P has reduced the forecast on trading revenues, cut down the 3Q EPS estimates from $0.30 to $0.28 & 4Q EPS estimates from $0.33 to $0.24 for the company after further review. The forecast for full year ’11 per share is widened from the loss of $0.10 to a loss of $0.21 and ’12 EPS estimates is lowered from $1.73 to $1.57. The analyst has retained the 12-month target price of $10 and forward four quarter EPS estimate of $1.39 based on a below-peers 7.2x multiple. The BAC shares are attractive at 0.51 PTBV, which is below the average of previous year, the analyst adds.