BARRON'S: Bank Of America Shares Are Going To $25
On Friday, the stock closed at $16.95.
In this weekend's edition of Barron's, Jack Hough writes that over the next three years, as penalties from the financial crisis that have been plaguing Bank of America finally dissipate, the stock could return more than 50% to shareholders.
Hough writes that earnings could hit $2 per share by 2017, and with fewer legal penalties and increasing dividends, shareholders could see returns of 50% - or more - over that period.
According to Hough, Bank of America expects it has resolved 95% of threatened or filed claims on mortgage securities. And while the broader banking industry still faces regulatory proceedings on alleged Libor-fixing and shenanigans in the currency market, Hough says Bank of America's exposure there is limited.
Bank of America CEO Brian Moynihan told Hough that the bank is already seeing rising profit in most core businesses, with these earnings offset by legacy costs.
The worst may be over for Bank of America, but as Moynihan told Hough, "The stock price depends on market sentiment."
So keep an eye on BofA shares on Monday.