ARGUS Downgrades Bank of America (BAC) to Hold

More News related to BAC
Top 10 News Items 1/9-1/13: Geithner Unveils Financial Rescue Plan; Big Bank Execs BBQ'ed on Capitol Hill; Stimulus Package Close to Final Approval
$12B Loss at Lloyds' HBOS Sends Shiver Through Financial Stocks
ARGUS Downgrades Bank of America (BAC) to Hold
Stock Preacher Issues Technical Trade Alerts on: AAPL, BAC, CAT, FCX, GE
Stock Preacher Issues Technical Trade Alerts on: AAPL, BAC, C, CAT, COP
More News related to BAC

More News related to Downgrades
Davenport Downgrades EnPro Industries (NPO) to Buy
BMO Downgrades Terex (TEX) to Market Perform
Ladenburg Thalmann Downgrades Avigen (AVGN) to Neutral
DA Davidson Downgrades Mercer Int'l (MERC) to Neutral
Credit Suisse Downgrades Xenoport (XNPT) to Neutral
More News related to Downgrades
February 13, 2009 10:35 AM EST

ARGUS downgrades Bank of America (NYSE: BAC) from Buy to Hold.

ARGUS analyst says, "We are downgrading Bank of America to Hold. We had upgraded BAC to BUY in early October 2008 with the stock priced in the high teens; since then, it has lost nearly two-thirds of its value. Bank of America had been one of only two BUY-rated large-cap bank stocks under Argus coverage. US Bancorp, also since downgraded to HOLD, was the other. The economy and credit markets deteriorated more rapidly than we expected during the final quarter of 2008, and those trends have continued into 2009. We also underestimated the depth of troubles still lurking on Merrill's balance sheet after several quarters of steep asset markdowns. If you believe BofA's CEO, BofA made the same mistake. Valuation measures don't mean much for banks these days, a lesson we also learned from our upgrade of BofA. Indeed, BofA currently trades at only about 25% of its tangible book value. However, we don't see catalysts for outperformance, and are now even more concerned about the costs of the government's ownership, both explicit costs and implicit ones."

Bank of America Corporation is a bank holding company.

__________________
All my posts are purely my opinion. Please use your own buy and sell signals and never invest in a stock you can not afford to lose money on. For a complete disclaimer click here