Morgan Stanley analyst Betsy Graseck said the current PE multiple at which Bank of America shares are trading is just below the PE trough the stock hit during the 2001 recession, which she calls "very cheap." Looking back at bank stocks during periods of curve inversion shows that Bank of America's stock performance during curve inversion is essentially "a coin flip," according to Graseck, who said she is "not so sure inversion is a one-way negative street" for BofA. The analyst, who sees accelerating loan growth, a more rational stress test and rising buybacks upcoming in the first half of next year, thinks the stock's weakness is giving long-term investors an opportunity. She keeps an Overweight rating and $36 price target on Bank of America shares.
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here
Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here
Check out this morning's top movers from around Wall Street, compiled by The Fly. HIGHER - Macatawa... To see the rest of the story go to thefly.com. See Story Here
Reports Q1 revenue $25.82B, consensus $25.46B. Reports Q1 CET1 capital ratio 11.8%. Reports Q1 tangible book value per share $24.79. Reports Q1 net charge-offs .58%. The bank said, "We reported a strong quarter as our businesses performed well, adding clients and deepening relationships. We reached 36.9 million consumer checking accounts, with 21 consecutive quarters of net checking account growth. Our Wealth Management team generated record revenue, with record client balances, and investment banking rebounded. Bank of America's sales and trading businesses continued their strong 2023 momentum this quarter, reporting the best first quarter in over a decade. Continued strong earnings and strong expense management both position our company to continue to drive our market leading positions across our businesses."
Notable companies reporting before tomorrow's open, with earnings consensus, include UnitedHealth (UNH), consensus $6.21... Johnson & Johnson (JNJ), consensus $2.47... Bank of America (BAC), consensus 72c... Morgan Stanley (MS), consensus $1.66... PNC Financial (PNC), consensus $3.02... BNY Mellon (BK), consensus $1.19.