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Jan. 12, 2021, 8:56 a.m. EST

Bank of America stock rallies after analyst says it's time to buy

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By Tomi Kilgore

Shares of Bank of America Corp. /zigman2/quotes/200894270/composite BAC +0.59% rose 1.1% in premarket trading Tuesday toward an 11-month high, after Citigroup analyst Keith Horowitz turned bullish, citing expectations that the bounce off the third-quarter bottom in net interest income will be bigger than expected. Horowitz raised his rating to buy from neutral and his stock price to $37 from $31; the stock hasn't closed at or above $37 since October 2008. He said he believes BofA is one of the largest beneficiaries of the return of capital to shareholders (stock repurchases and dividends), which should resume next quarter. "[BofA] is also more levered to consumer, which we think will perform better this credit cycle given the stimulus programs," Horowitz wrote. The stock has run up 28.8% over the past three months through Monday, while the SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF -0.16% has climbed 21.6% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.64% has gained 7.5%. Horowitz also upgraded PNC Financial Services Group Inc. /zigman2/quotes/203416310/composite PNC +0.22% and Bank of New York Mellon Corp. /zigman2/quotes/200171276/composite BK +0.38% to buy from neutral.

/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 42.30
+0.25 +0.59%
Volume: 8.07M
May 11, 2021 10:03a
P/E Ratio
17.98
Dividend Yield
1.71%
Market Cap
$360.34 billion
Rev. per Employee
$445,624
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/zigman2/quotes/209660484/composite
US : U.S.: NYSE Arca
$ 37.69
-0.06 -0.16%
Volume: 11.65M
May 11, 2021 10:03a
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/zigman2/quotes/210599714/realtime
US : S&P US
4,161.65
-26.78 -0.64%
Volume: 463.66M
May 11, 2021 10:03a
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/zigman2/quotes/203416310/composite
US : U.S.: NYSE
$ 199.00
+0.44 +0.22%
Volume: 338,542
May 11, 2021 10:03a
P/E Ratio
10.34
Dividend Yield
2.32%
Market Cap
$84.36 billion
Rev. per Employee
$355,737
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/zigman2/quotes/200171276/composite
US : U.S.: NYSE
$ 52.47
+0.20 +0.38%
Volume: 538,466
May 11, 2021 10:03a
P/E Ratio
13.90
Dividend Yield
2.38%
Market Cap
$45.84 billion
Rev. per Employee
$346,000
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