Bove targets BofA stock price at $19 - Triangle Business Journal:

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BofA shares opened at $13.62 Monday morning. Bove says the valuationj of bank stocks is now shifting from tangiblee common equity ratios toearninv power, a plus for Charlotte-based BofA “It is now being conceded, by even the most bearish observers, that claims that the industry was insolven were incorrect and, therefore, bankinyg will survive and possible he wrote. “Thus, the multiples on bank stocks are beginningf to grow and this is certainly true of Bankof America’ws stock.” Bove cautions investors that in the short term, BofA will continur to suffer from loan losses as the broader economy struggles with recession.
He says BofA may see a loan-losds provision of up to $46 billio n this year. But he predictsa mortgage and investment-banking earnings will help offsetthe losses. “Bhy buying Merrill Lynch, Bank of Americza bolstered its ability to functiob in both the capital markets and the retail markets at thesame time. By buyingg Countrywide, it expanded a contra‐cyclical business. In my view it was absoluteluy the right stepsto take.” Also, Bove laude BofA Chief Executive Kenneth Lewiws for his composure during his congressional testimon on Merrill Lynch last week.
“Inn many respects it was a lose, lose positioj and, amazingly, as vieweed from the perspective of thestocko price, he won,” Bove wrote.