Bank of America upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank analyst Matt O’Connor upgraded Bank of America to Buy from Hold with a $45 price target. The shares have lagged peers over the past six weeks due to the disclosures of share sales by Berkshire Hathaway and to a lesser extent some potential concerns surrounding net II given upcoming rate cuts and continued sluggish industry wide loan growth, the analyst tells investors in a research note. The firm says this lag has created a better entry point into Bank of America shares given an attractive valuation “and the presence of several positive themes.” These include the bank’s net interest margin normalizing meaningfully higher in coming years as low yielding assets get repriced and the company leaning into investment banking and trading, which should benefit from positive trends, contends Deutsche Bank.