Highlights
ä The STARS recommendation for BAC has recently
been changed to 2 (sell) from 3 (hold)
and the 12-month target price has recently
been changed to $10.00 from $17.00. The Highlights
section of this Stock Report will be updated
accordingly.
Investment Rationale/Risk
ä The Investment Rationale/Risk section of this
Stock Report will be updated shortly. For the
latest News story on BAC from MarketScope,
see below.
ä 12/23/08 03:04 pm ET ... S&P REITERATES
DOWNGRADE EARLIER TODAY ON SHARES OF
BANK OF AMERICA TO SELL (BAC 12.86**): Prior
opinion was Hold.We also lower EPS estimates
to reflect our higher projection of securities
writedown and loss provisions. Based on
widening spreads in secondary market, particularly
for commercial real estate, we look for Q4
writedowns to be up from Q3. In addition, we
think BAC will continue to add to reserves well
above chargeoff levels because of worsening
of credit conditions. All told, we are reducing
our '08 and '09 EPS estimates by $0.14 and
$0.48, respectively, to $1.33 and $1.87. Our target
price, cut earlier from $17, is $10, in line