Bank of America (NYSE: BAC) was downgraded by equities research analysts at Zacks Investment Research from a “neutral” rating to an “underperform” rating in a research note issued to investors on Friday. The analysts currently have a $5.75 price target on the stock.
Zacks’ analyst wrote, “We are downgrading our recommendation on Bank of America to Underperform based on the company’s weak capital position, recent ratings downgrade and various legal battles into which the company is embroiled. The third-quarter earnings substantially outpaced the Zacks Consensus Estimate. The sale of non-core assets and accounting gains made it possible for the company to swing to profit during the quarter. However, excluding nonrecurring items, the company would have incurred a loss. A significant reduction in the size of balance sheet and enhanced Tier 1 common equity ratio were among the positives. Moreover, the core results were aided by an improved top line and lower provision for credit losses. On the flip side was a higher non-interest expense. The company is poised to benefit from its large-scale operations and improving credit quality. It will also benefit from the efficiency initiative program. However, the recent payments, which would be made by the company to settle mortgage-related claims, will significantly hamper the results. Further, revenue headwinds and issues related to the regulatory changes will continue to restrict its earnings.”
Separately, analysts at Citigroup (NYSE: C) cut their price target on shares of Bank of America to $8.00 in a research note to investors on Thursday. Analysts at Morgan Stanley (NYSE: MS) downgraded shares of Bank of America from an “overweight” rating to an “equal weight” rating in a research note to investors on Tuesday, November 15th. They now have a $10.00 price target on the stock. Also, analysts at JPMorgan Chase & Co. (NYSE: JPM) reiterated an “overweight” rating on shares of Bank of America in a research note to investors on Monday, November 7th. They now have a $13.00 price target on the stock.
Bank of America Corporation is a bank holding company, and a financial holding company. The Company is a financial institution, serving individual consumers, small and middle market businesses, large corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Through its banking subsidiaries (the Banks) and various nonbanking subsidiaries throughout the United States and in selected international markets, it provides a range of banking and nonbanking financial services and products through six business segments: Deposits, Global Card Services, Home Loans & Insurance, Global Commercial Banking, Global Banking & Markets, Global Wealth & Investment Management, with the remaining operations recorded in All Other.
Shares of Bank of America traded down 0.63% during mid-day trading on Friday, hitting $6.27. Bank of America has a 52 week low of $4.92 and a 52 week high of $15.31. The stock’s 50-day moving average is $5.48 and its 200-day moving average is $7.29. The company has a market cap of $63.552 billion.