Trading Target for BAC Raised to $14-$15

by Sam Collins | March 7, 2013 7:11 am

Bank of America (NYSE:BAC[1]) — The second largest U.S.-based financial holding company has global assets of $2.13 trillion. Year-end reviews by Wall Street analysts resulted in upgrades.

Reported earnings for 2011 were just $0.01. In 2012, the bank earned $0.25. The newly revised consensus for 2013 is $1 and $1.29 for 2014. The stock, along with other bank stocks, was upgraded in December by the well-known bank analyst Meredith Whitney, who said, “the banks right now are more adequately capitalized,” and she took special note of BAC as undervalued.

Technically, BAC broke from a 10-month cup-and-handle formation in early December, rising to a new high at $12.34 in February. That high was followed by a round of profit-taking that bottomed at $11.02, where it bounced from its bullish support line. Wednesday it gapped through both its 20-day and 50-day moving average and flashed a buy from its MACD.

The trading target is being raised from $14 to $15. Longer term, the stock could trade in the low $20s.

BAC Chart[2]

Trade of the Day Chart Key[3]

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