Monday, April 18, 2011

BofA (BAC) Estimates Slashed by Atlantic Equities

EPS estimates of Bank of America (NYSE:BAC) were cut by Atlantic Equities after the release of the earnings report of the company.

Concerning legacy mortgages, Atlantic Equities analyst Richard Staite said he believes the giant bank will continue to be challenged by them, which will put downward pressure on the stock's valuation multiple. Lower sales should be offset by reduced provisions, he added.

Full year 2011 adjusted-EPS are expected to come in at 97 cents, according to Atlantic Equities, dropping from the prior $1.22, and way down from consensus of $1.27. For full year 2012 estimates were dropped from $1.62 to $1.56, also far below consensus of $1.85.

Staite also asserts he doesn't believe there will be any "meaningful" dividend boost before 2013.

Atlantic Equities reiterates a "Neutral" rating on Bank of America and a price target of $16 a share. Bank of America was trading at $12.39, falling $0.43, or 3.39 percent, as of 12:22 PM EDT.

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