Bank of America’s Stock Is ‘Massively Undervalued,’ Rochdale’s Bove Says |
| Bloomberg - Jun 27, 2011 |
Bank of America Corp. (BAC) is being “massively undervalued” by investors, and its stock will recover as earnings outpace costs linked to troubled home loans, said Richard X. Bove, an analyst at Rochdale Securities LLC.
“Under the bleakest of scenarios Bank of America’s book value will rise in the next three years,” Bove, who is based in Lutz, Florida, wrote today in a note to clients. “At some point the market will adjust to the company’s real values.”
Bank of America, the biggest U.S. lender by assets, has slid 19 percent in New York Stock Exchange composite trading this year amid mortgage writedowns and legal costs tied to the nation’s housing slump. Shares of the Charlotte, North Carolina- based bank climbed 30 cents to $10.82 at 10:30 a.m. today after international regulators announced planned capital requirements that eased concerns that rules would be more stringent.
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- Posted: 2011-06-27 09:44:35
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