Bank of America: Jefferies downgrades stock
(CercleFinance.com) - Jefferies has downgraded its rating on the Bank of America stock from "buy" to "hold," given that the banking stock's upside potential is now deemed to be insufficient relative to the broker's target price, which it maintains at 32 dollars.
"After a very strong 4Q18 result, the 1Q19 print showed incremental challenges in numerous revenue areas," says the analyst, who specifies that this concerns both net interest income and commissions.
Therefore the broker has cut its EPS estimates for the group (-3% for 2020), and amongst universal banks, it recommends investors increase their positions on its US peer Citigroup rather than Bank of America.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"After a very strong 4Q18 result, the 1Q19 print showed incremental challenges in numerous revenue areas," says the analyst, who specifies that this concerns both net interest income and commissions.
Therefore the broker has cut its EPS estimates for the group (-3% for 2020), and amongst universal banks, it recommends investors increase their positions on its US peer Citigroup rather than Bank of America.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.