Despite a recent downgrade of Bank of America Corporation (NYSE:BAC) stock by Keefe Bruyette Woods, analyst Richard Bove of Rochdale Securities has called for BAC to hit $32 per share in three years. That’s a downward revision of Bove’s May prediction for banking stocks when he said shares in Citigroup Inc. (NYSE:C) and BAC could sextuple by 2015.
“While his official price target is $19.25, he also states in the report that he believes Bank of America will ‘more likely’ return to its historical price of 1.5 times book value, which would be $32,” BusinessInsider.com reports.
Shares in Bank of America have markedly underperformed Citigroup over the past six months as news sources speculate BAC could be the target of an upcoming WikiLeaks document release. Bank of America shares have lost 20.5 percent in value since June, while Citigroup shares are up more than 17 percent.
WikiLeaks or not, I remain bullish on banks as the Fed’s money-printing policies make it easy for lending institutions to profit on near-zero percent interest rates.
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