S&P Capital IQ Reiterates its BUY Rating on Bank of America, Target Price Reduced

October 19 00:00 2011

NEW YORK, October 19 (RainbowNewsLine.com) – Analyst Erik Oja of S&P Capital IQ maintains his BUY rating on the shares of Bank of America Corp (NYSE: BAC), while raising the estimates for the company. The target price has been reduced from $10 to $ 8.

Analyst Erik Oja, in a research note published yesterday mentions that the company reported its Q3 EPS ahead of the estimates, driven by a valuation adjustment that added $0.36. The company’s net interest margin declined by 18 basis points and the analyst believes that such decline will reduce in coming quarters. The analyst also cited improvements in loan credit facility, higher capital ratios, and no goodwill impairments during the quarter. The EPS estimate for 2011 has been raised from $0.21 loss to $ 0.10 based on company’s results and lower provision for Q4 estimates. The target price is reduced on order to reflect the recent decline in bank multiples and the EPS estimates for the four quarters ahead.

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