Bank of America: Jefferies downgrades stock
(CercleFinance.com) - Jefferies has downgraded its rating on the Bank of America stock from "buy" to "hold," given that the banking stock's upside potential is now deemed to be insufficient relative to the broker's target price, which it maintains at 32 dollars.
"After a very strong 4Q18 result, the 1Q19 print showed incremental challenges in numerous revenue areas," says the analyst, who specifies that this concerns both net interest income and commissions.
Therefore the broker has cut its EPS estimates for the group (-3% for 2020), and amongst universal banks, it recommends investors increase their positions on its US peer Citigroup rather than Bank of America.
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