Friday, September 27, 2013

Analysts downgrade Bank of America stock

The bank analysts at Guggenheim Securities have downgraded Bank of America stock from a "buy" rating to "neutral" in a report released this morning, citing the "short-term headwind" presented by falling mortgage banking revenue and pressured capital markets activity. As interest rates have shot up this summer, mortgage applications have plummeted because refinancing has become less attractive. The analysts also moved Goldman Sachs from "buy" to "neutral."

Bank of America's shares are up 21 percent so far this year, and have gained 60 percent from this time last year. But going forward, Guggenheim writes that the bank needs to improve its returns for the stock price to go appreciably higher. Continuing to put legal issues in the past should help, the analysts write.

The Charlotte bank's stock was down half of one percent in pre-market trading.

CHARLOTTEANS FEELING BETTER ABOUT RETIREMENT: This year, about half of Charlotte is feeling optimistic about retirement, according to a survey this week from Ameriprise Financial. That might not sound great, but at least it's better than last year, when only three in 10 said they were optimistic. But even those feelings might not be warranted. Charlotte made a big jump in the rankings of cities feeling confident in retirement, but stayed near the bottom in actual retirement preparation. Only 60 percent said they've put money in a retirement account -- the lowest percentage in four years.

CAPITAL GUARDIAN HAS NEW PRESIDENT: The boutique wealth management firm has brought in Larry Gratch to be its new president and chief operating officer. He had been with Pershing LLC, which is a part of Bank of New York Mellon.

****This is a preview of The Charlotte Observer's Bank Watch Morning Report, bringing you banking news from the region, the top financial headlines, and the news driving activity in the Charlotte market.****

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2 comments:

Willy Loman said...

Legal issues will never be in the past for this bank. DC does not like the bank, and therefore any tom, dick or harry that wishes to bring a mortgage-related suit, a foreclosure-related suit, an eeoc related suit....etc, etc., will be collecting minted cash from the bank. I am surprised BofA hasn't been bled to death yet.

Anonymous said...

Yeah but the bank can mint its own cash thanks to Bernanke.