Shares pop after Stifel upgrades Bank of America to 'buy'

The analysts at investment firm Stifel Nicolaus upgraded Bank of America shares to a "buy" Monday -- and the bank's shares were up 4 percent by mid-day.

The report says the Charlotte bank will be able to increase its earnings by a greater percentage than its peers once the effects of Bank of America's massive cost-cutting program are finally felt. The bank plans to ultimately cut $8 billion off its annual expenses through streamlining and about 30,000 job cuts.

Stifel also said it liked the bank's capital position and expects a dividend increase.

"BAC is actually better positioned for the current environment than many banks that have already bled the loan loss reserves dry, have little exposure to mortgage origination and debt underwriting in the low interest rate environment, and have no material expense reductions on the horizon," the analysts wrote.

The analysts set a target price of $11 per share. It's currently around $9.50.