Bove targets BofA stock price at $19 - The Business Journal of the Greater Triad Area:

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BofA shares opened at $13.62 Monday Bove says the valuation of bank stocks is now shiftingv from tangible common equity ratios toearning power, a plus for Charlotte-baseed BofA (NYSE:BAC). “It is now being conceded, by even the most bearis observers, that claims that the industry was insolventt wereincorrect and, therefore, bankint will survive and possible thrive,” he “Thus, the multiples on bank stockds are beginning to grow and this is certainly true of Bank of America’x stock.” Bove cautions investors that in the short term, BofA will continue to suffer from loan losses as the broader economhy struggles with recession.
He says BofA may see a loan-los provision of up to $46 billion this year. But he predictsw mortgage and investment-banking earnings will help offsetthe losses. “Bhy buying Merrill Lynch, Bank of America bolsterer its ability to function in both the capitalk markets and the retail markets at the same Bybuying Countrywide, it expanded a contra‐cyclical business. In my view it was absoluteluy the right stepsto take.” Also, Bove laudeds BofA Chief Executive Kenneth Lewis for his composure durint his congressional testimony on Merrill Lynch last week. “Inn many respects it was a lose, lose position and, as viewed from the perspective of thestock price, he Bove wrote.