Bank Of America's Stock Jumps Toward Record Close After Analyst Upgrade

By Tomi Kilgore Markets MarketWatch Pulse

Shares of Bank of America Corp. powered up 2.8% toward a record high in active midday trade Thursday, after Raymond James turned bullish on the banking giant, on the belief that President-elect Donald Trump will bring "better days ahead." Recent volume of 93 million shares made the stock the most actively traded on the major U.S. exchanges. Analyst David Long raised his rating to outperform, after being at market perform for about five months, and initiated a stock price target of $26, which is 12% above current levels. The stock has rocketed 37% since the election, compared with a 19% surge in the SPDR Financial Select Sector ETF and a 6% gain in the S&P 500 . "The question we expect to receive on our more constructive view on BAC is why now after such a run up in their stock," Long wrote in a note to clients. "However, with the changing of the guard, the prospect of stronger economic growth, a lengthening of the credit cycle, higher interest rates, and a clearer path to achieving its profitability targets, we see risk-reward more positively than we did under the prior administration."

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