Bank Of America's Stock Jumps, As Analyst Upgrade Fuels Bounce

Bank of America Corp.'s stock jumped 6.2% in premarket trade Tuesday, on the heels of an upgrade at RW Baird, which cited improved valuation. Analyst David George raised his rating to outperform from neutral, saying in a note to clients that he believes the recent discounted valuation "provides and adequate margin of safety" for investors, while steady growth in tangible book value should drive appreciation for the stock until the interest rate and growth outlook improves. The stock plunged 14% in the past five sessions to close Monday at the lowest level since Jan. 30, as concerns over slowing growth in China rattled global stock markets, and gave reason to believe the Federal Reserve will delay an interest rate increase, which would help boost banks' net interest income.