FBR analyst Paul Miller was out with a favorable report on shares of Bank of America Corp (NYSE:BAC), after the banking giant released second-quarter earnings that beat his estimates. Bank of America said earnings per share came in at $0.36, outclassing Miller’s predictions of $0.35 as well as the Street’s expectations for $0.33. With Bank of America only continuing to grow in revenue even in a tough atmosphere, Miller reiterates an Outperform rating with a price target of $20.00.

With the strongest earnings to date in five years- thanks to solid sales and trading revenue- Miller could not feel more bullish coming from this second quarter for the company’s prospects turning the corner. Miller notes that “while expenses increased sequentially, we believe it was largely a function of the impressive revenue growth in the quarter.” Even with presently climbing interest rates, Miller thinks BAC is ready for battle and predicts a continual growth of net interest income well into 2017, thanks to valuable assets.

BAC management plans to procure close to $3 billion by cutting expenses over a course of ten quarters for even higher yields. With cost-efficiency in mind, Miller has every reason to believe Bank of America can rise even further with increased returns on shareholder equity bolstered by consistently earning additional capital. Miller’s analysis shows BAC shares trading at 85% of tangible book value, withholding intangibles and goodwill. In reaction to stellar second quarter results, Miller is raising his earnings per share estimate from $1.35 to $1.42, and accordingly has adjusted his outlook for 2017 earnings per share estimate from $1.60 to $1.55.

Miller notes that per BAC’s management conference call, Bank of America anticipates an expense target of fixed costs targeted at about $53 million for the year 2018, with space to better cost base after expectations for a lucrative 2017; even withstanding an increase of $100 million from the Federal Deposit Insurance Corporation to begin next quarter.

As usual, we find it important to provide a track record for an analyst when reporting on new notes to give key perspective on the effect it has on stock performance. According to TipRanks, Paul Miller has earned a ranking of #552 out of 4,057 analysts, upholding a 64% success rate with an average return of 5.7% per recommendation.

TipRanks analytics exhibit Bank of America stock as a current Strong Buy. Based on the recommendations of 17 analysts polled in the last 3 months, 76% have rated a Buy for BAC, with 24% standing by with a Hold rating. The overall consensus for the price target over a period of 12 months is $17.27, marking a 20% upside from where shares last traded.