Oppenheimer analyst Chris Kotowski weighed in with his opinions on Bank of America Corp (NYSE:BAC) as a follow up to the his report on the company published last week. The report, titled “BAC vs. JPM: Why We Think BAC Needs to Go a Long Way on Expenses”, argued that BAC needs to launch a $3-5B efficiency drive in order to close the gap between its and JPM’s profitability and efficiency ratios. If they do this, it should close the valuation gap between BAC trading at 1.2x TBV and JPM at 1.5x. Kotowski reiterated an Outperform rating on Bank of America with a price target of $21.00. Shares of BAC are currently trading at $17.32, down $0.06, or -0.32%.

Kotowski observed, “If one believes this thesis, the TARP warrants expiring in January of 2019 (BAC/WA $6.25) strike us as the best investment vehicle for expressing this view. The $30.78 warrants of October 2018 (BAC/WB $0.55), however, would expire worthless under this scenario.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Chris Kotowski has a total average return of 3.8% and a 69.9% success rate. Kotowski has a 3.1% average return when recommending BAC, and is ranked #683 out of 3632 analysts.

Out of the 14 analysts polled by TipRanks, 10 rate Bank of America stock a Buy, while 4 rate the stock a Hold. With a return potential of 8.0%, the stock’s consensus target price stands at $18.68.