I see some on CNBC call for a double in BAC from here...which is huge but in my mind seems reasonable. they have a lot of good things going for it. But i truly believe it goes higher from here, how much? i don't know, but for giggles i'll say 18.
Interest savings on preferred and reduced float will increase EPS by around 7-8%. So $15 looks more likely that $20. The cost cutting efforts would also add to margins. If they do more on cost savings, 2014 could be a real turn around year in terms of stock price and dividend increases. Buying now makes a lot of sense because economy improving, litigation cost will dissipate, losses from foreclosures disappearing, dividend increaes every year - all of these catalysts will take it to $20 and $25 in 2015. So 100% gain in two years is not a bad return.
Actually it is a 11 BILLION buyback. They also bought 5.5 Billion worth of Preferred in ADDITION to the 5.5 Billion Common. This will reduce interest payments on same by about 80 Million per year. This goes on the books as cash! I will be closer to 25.PPS by year end. Remember, now trading at about .60% of book. Been "held" down by hedgies manipulating PPS.