Shares of Bank of America (BAC) are up 26 cents, or 1.5%, at $16.64 after Credit Suisse analyst Moshe Orenbuch upgraded the shares to “Outperform” from “Neutral,” and he’s looking at the company based on “normalized” earnings, even though nobody — including B of A — knows when normalized earnings will materialize.
The stock is one of the cheapest large banks, trading at about 6 times his normalized EPS estimate of $2.65.
BAC should build book value rapidly throughout this year, argues Orenbuch. He raised his target price on the stock to $21 from $17.
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