Bank of America (BAC) - 50% Upside to $24 Target

Bank of America (NYSE: BAC) shares have been ironically placed into a position to achieve superior appreciation over the next year. Fear of higher interest rates had stocks moving sharply lower recently, including BAC. But, ironically, Bank of America will benefit significantly from a higher interest rate environment. Then on Thursday, the bank was separated from its peers by the Fed’s second round of stress testing, keeping it from participating in the rally its peers enjoyed. However, ironically, the bank will still be allowed to return $4 billion in value to shareholders via its planned share repurchase program over the next 12 months. For this reason, BAC looks ironically misplaced to me, and given its valuation discount to peers, I expect superior appreciation for BAC over the next year amounting to at least 50% appreciation toward my target price of roughly $24 a share. See my full report on Bank of America (BAC) here.

Bank Stocks	03-12-15
SPDR S&P 500 (NYSE: SPY)	+1.3%
Bank of America (NYSE: BAC)	-0.1%
Citigroup (NYSE: C)	+3.3%
J.P. Morgan Chase (NYSE: JPM)	+1.9%
Wells Fargo (NYSE: WFC)	+3.5%
Goldman Sachs (NYSE: GS)	+3.1%
Morgan Stanley (NYSE: MS)	+6.1%

DISCLOSURE: Kaminis is long BAC. Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.