Bank of America's stock price could be set for a steeper skid than any other big bank should Congress fail to reach an agreement on the so-called "fiscal cliff" by the end of the year, analysts with Guggenheim Securities say today.
Here's why:
- Bank of America has fallen farther than its peers the last few times the industry slid.
- While bank stocks have fallen slightly in the last few months, Bank of America's stock has actually increased.
Guggenheim's analysts believe the Charlotte bank's stock could slide below $8 if no deal is reached on the slate of tax increases and spending cuts. Bank of America was at $9.83, down less than 1 percent on the day, as of 1:45 p.m.
Of course, if lawmakers do come to an agreement, bank stocks stand to benefit. These analysts just don't think Bank of America is worth that risk.
They do like the odds for Wells Fargo, PNC Financial and JPMorgan Chase a lot better. They could each could see a benefit of as much as 30 percent in their stock price if an agreement is made, Guggenheim's analysts wrote.
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2 comments:
Let them go bankrupt.
It should have happened 4 years ago.
If they would have, BOA would be at the top of the world. Get your facts right.
For full disclosure, I've never worked nor had accounts with BOA (nor have family or friends that work for them)
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