Shares of Bank of America Corp. (BAC) 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 (XLF) has climbed 21.6% and the S&P 500 has gained 7.5%. Horowitz also upgraded PNC Financial Services Group Inc. (PNC) and Bank of New York Mellon Corp. (BK) to buy from neutral.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 12, 2021 08:56 ET (13:56 GMT)
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