Bank of America downgraded to Hold from Buy at Odeon Capital

Odeon Capital analyst Dick Bove downgraded Bank of America to Hold from Buy with a $33.90 price target. The analyst raised the rating on Bank of America stock to a Buy approximately one month ago on the theory that interest rates would decline, increasing the bank’s real book value, but now thinks “that the rating adjustment was a mistake” after Bank of America’s Q4 earnings, when adjusted for one-time events, were “disappointing.” It appears that rates may not fall by much this year and rate cuts could be delayed until Autumn, but “what is of greater importance is Bank of America’s earnings outlook, which “is not good,” the analyst tells investors.