Bove targets BofA stock price at $19 - Jacksonville Business Journal:

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BofA shares opened at $13.62 Monday Bove said the valuation of bank stocks is now shiftinh from tangible common equity ratios to earning power, a plus for N.C.-based BofA (NYSE: BAC). “It is now being conceded, by even the most bearisbh observers, that claims that the industry was insolvenr wereincorrect and, therefore, banking will survive and possibly thrive,” he “Thus, the multiples on bank stocksd are beginning to grow and this is certainlu true of Bank of America’sa stock.” Bove cautioned investors that in the shor t term, BofA will continue to suffer from loan losses as the broade r economy struggles with recession.
He said BofA may see a loan-losds provision of up to $46 billion this year. But he predicteed mortgage and investment-banking earnings will help offsetthe “By buying Merrill Lynch, Bank of America bolsteredf its ability to function in both the capital marketsd and the retail marketsd at the same time. By buying it expanded a contra‐cyclical business. In my view it was absolutelg the right stepsto take.” Also, Bove lauded BofA CEO Kennethn Lewis for his composure during his congressional testimony on Merrilk Lynch last week. “In many respectsa it was a lose-losde position and, amazingly, as viewefd from the perspective of thestock price, he won,” Bove wrote.