Bank Of America Upgraded To Buy From Neutral By UBS Analysts

Bank of America Corp. was upgraded on Thursday to a buy rating from neutral by analysts at UBS. The bank's new price target was upped to $20 a share from $16.80 a share. The bank's two top brands in Bank of America and Merrill Lynch will help it "regain its footing" and the bank's less "less complex business model with more domestic exposure may justify a premium in the near term relative to its peers," said analysts. Bank of America's deposit profile means it will be under less pressure than its peers to pass along Federal Reserve rate boosts to depositors, says UBS. UBS reduced their earnings estimates for 2014 to 29 cents a share from 37 cents a share and for 2015 to $1.40 from $1.50. The decrease to the 2014 and 2015 estimates are due to higher expenses and a moderately weaker capital markets outlook, said analysts. UBS increased earnings per share to $1.85 from $1.70 for 2016. Bank of America shares up 0.65% in early trading and were up 8% year-to-date to $16.82 a share.