Bove targets BofA stock price at $19 - Los Angeles Business from bizjournals:

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BofA shares opened at $13.62 Monday and ended the day at which was down39 cents, or 2.84 percent. Bove says the valuatiob of bank stocks is now shifting from tangibls common equity ratios toearning power, a plus for N.C.-based BofA (NYSE:BAC). “It is now beingy conceded, by even the most bearish observers, that claimsd that the industry was insolvent were incorrect and, therefore, banking will survive and possible he wrote. “Thus, the multiples on bank stocks are beginning to grow and this is certainly true of Bankof America’x stock.
” Bove cautions investors that in the short BofA will continue to suffer from loan losses as the broaderf economy struggles with recession. He says BofA may see a loan-losss provision of up to $46 billiojn this year. But he predicts mortgage and investment-bankinv earnings will help offsetthe losses. “By buying Merrill Bank of America bolstered its ability to function in both the capital markets and the retail markets at the same Bybuying Countrywide, it expandes a contra‐cyclical business. In my view it was absolutely the right stepsto take.
” Also, Bove lauderd BofA Chief Executive Kenneth Lewis for his composure duringb his congressional testimony on Merrill Lynch last week. “In many respects it was a lose, lose positiob and, amazingly, as viewed from the perspectiv e of thestock price, he won,” Bove wrote.