Analyst: Bank of America Will Outperform in 2014
Shares of Bank of America Corp. (NYSE:BAC) climbed as much as 3.5 percent on Thursday afternoon after an analyst at Citigroup gave the stock a huge thumbs up. Keith Horowitz upgraded the stock to a Buy and slapped on a $19 price target, representing possible upside of 22 percent from the previous closing price of $15.57 and about an 18 percent premium on the current median analyst price target of $16 per share.
In a note seen by Barron’s, Horowitz argued that a healing economy and slowly evaporating legacy issues (read: a mountain of post-crisis litigation) could be a winning combination for the company in 2014. “If US economy continues to improve,” Horowitz wrote, “we believe investors will look to BAC (as well as JPM) as a play on the US economy due to an asset sensitive balance sheet and exposure to the US consumer.”
JPMorgan Chase & Co. (NYSE:JPM), more beleaguered by major headline litigation right now than Bank of America, also received an upgrade from Horowitz. The analyst set a $72 price target on the stock, representing a possible upside of about 23.1 percent from the stock’s previous close.