Dear Dick Bauv analyst predicts bright future for Bank of America shares. The expert believes that in 2 years the bank will double the price of paper - based on AMarkets.
Bauv believes that both companies - Citi and Bank of America (BofA) - are now selling their shares at a discount of 35-40% to the cost of the balance sheet. The expert is convinced - the situation is absurd. The papers are very attractive and have cost much more.
On paper Citigroup last week trading around the level of $ 45, and Bank of America - about $ 14. The fact is that the US banking sector at the start of the year stays in a pen. Against the backdrop of oil prices collapse, banks suffer losses on loans, which are granted to the energy sector. Low interest rates also hit the banking stocks, erasing the profit of banks, which are made on credit. The banking sector - the most bad game segment since the beginning of 2016.
The expert believes that the bank shares will rise to any positive news, and to grow strongly. What this may be news? For example, reducing costs, improving credit conditions and others.