Top Analyst Views Bank of America Corp (BAC) As Attractively Valued

Bank of America Corp (NYSE:BAC) reported fourth-quarter earnings Friday that exceeded expectations. The banking giant reported earnings of $0.40 per share on revenue of $19.99 billion, compared to consensus estimates of $0.38 EPS on revenue of $20.85 billion. Additionally, BAC announced an increase to its buyback program through the first half of 2017.

Subsequently, FBR’s top analyst Paul Miller reiterated an Outperform rating on BAC stock, with a price target of $27.00.

Miller commented, “As we look ahead to 2017, we believe that BAC is well positioned to continue improving ROEs and to deliver EPS growth even without any material benefit from higher interest rates as it continues to grow revenues and reduce expenses. With that said, we expect BAC’s asset sensitivity will support profitability in 1Q17 and full-year 2017 as rates currently sit well above where they were throughout most of 2016. Reflecting 4Q16 results and 2017 commentary, we increase our FY17 operating EPS estimate to $1.75 from $1.60 and our FY18 operating EPS estimate to $2.08 from $1.80. We view shares of BAC as attractively valued, currently trading at 1.35x TBV per share and 13x our FY17 EPS estimate.”

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Paul Miller is ranked #82 out of 4,349 analysts. Miller has a 69% success rate and wins 17.5% in his annual returns. 


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