Bove targets BofA stock price at $19 - Silicon Valley / San Jose Business Journal:

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BofA shares opened at $13.62 Monday morning. Bove says the valuatiob of bank stocks is now shifting from tangibl common equity ratios toearning power, a plus for Charlotte-based BofA “It is now being conceded, by even the most bearisbh observers, that claims that the industry was insolvent were incorrec t and, therefore, banking will survive and possible thrive,” he “Thus, the multiples on bank stocks are beginning to grow and this is certainly true of Bank of America’s stock.
” Bove cautions investors that in the shoryt term, BofA will continue to suffer from loan losses as the broadert economy struggles with He says BofA may see a loan-loss provision of up to $46 billion this year. But he predicts mortgage and investment-bankingy earnings will help offsetthe “By buying Merrill Lynch, Bank of Americw bolstered its ability to function in both the capital markets and the retail marketw at the same time. By buying Countrywide, it expandec a contra‐cyclical business. In my view it was absolutely the right stepsto take.
” Also, Bove laudef BofA Chief Executive Kenneth Lewis for his composure durintg his congressional testimony on Merrilkl Lynch last week. “In many respectss it was a lose, lose position and, amazingly, as viewee from the perspective of thestock price, he Bove wrote.