Bank of America stock gains after UBS turns bullish a week before earnings report
Shares of Bank of America Corp. rose 0.5% in morning trade Wednesday, after the bank was upgraded a week before its fourth-quarter report at UBS, which cited "attractive" valuation and "healthy positive" operating leverage. Analyst Saul Martinez raised his rating to buy, after being at neutral since January 2017. "We think the current share price offers and attractive entry point for a leading franchise with proven risk and expense discipline and above-peer profitability," Martinez wrote in a note to clients. "Even with slowing revenue growth, BAC should continue improving efficiency metrics and, importantly, appears comparatively well positioned to withstand a turn in credit." BofA is scheduled to report results before the Jan. 16 open. The stock has lost 14.5% over the past three months, while the SPDR Financial Select Sector ETF has declined 13.0% and the Dow Jones Industrial Average has slipped 9.4%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.