Bank of America has been making a run in the month of June. Bank of America has been up 6% since June 1st. We are above our buy in price and heading towards our price target of $21.00. It is trading up because the Fed will be making their decision if interest rates are going to increase. The treasury yields have been increasing and having financial company stock increase as well.
I recommend to hold the company. Bank of America has been cost-cutting and refining their loan book for a higher interest rate environment. When interest rates increase Bank of America's net interest margin, the money they make off of loans, will increase as well. Along side the net interest margin, Bank of America's multiples are not at historical or comparable levels. Any major litigation have passed and unless another scandal hits among the big banks I do not see any legal fees in Bank of Americas future.
No comments:
Post a Comment