UPDATE 1-Analysts cut Bank of America '08 earnings estimates

martes 22 de abril de 2008 17:25 CEST

  (Recasts, adds details, share price)
 April 22 (Reuters) - Several analysts, including Punk
Zeigel's Richard Bove and Oppenheimer analyst Meredith Whitney,
cut their 2008 earnings estimates on Bank of America Corp
(BAC.N: Cotización) on fears of higher credit costs and loan loss
provisions, after the largest U.S. retail bank posted a 77
percent drop in first-quarter profit.
 "As declining housing prices continue to weigh on all
aspects of the economy, deteriorating credit quality is
reverberating through bank earnings as provisions and
charge-offs rise," Whitney said in a research note to clients.
 On Monday, Bank of America said it expects earnings this
year to take an "upward trajectory," even as it posted weak
quarterly results, adding that it would not change its
"dividend philosophy" but could review it if the environment
got "noticeably worse."
 Punk Ziegel's Bove, who rates the stock a "buy," said the
bank's margins, loans and net interest income were rising at
above average rates, adding that it was well capitalized, very
liquid and its dividend appeared to be safe.
 Bove also said it was likely that the excess reserves
created by the bank would be reduced and, at that time, its
earnings would move somewhat higher.
 David Hilder of Bear Stears also maintained his
"outperform" rating on the stock, saying the bank had a
premiere national retail and commercial banking franchise, and
an attractive valuation.
 Shares of the bank were down 56 cents at $37.05 in morning
trade on the New York Stock exchange.
 Following are the price target and esitmates changes made
on Bank of America:
 Brokerage       Rating         Price target   2008 EPS view  
 2009 EPS view
                             New    Old     New     Old    
 New     Old
 Punk Ziegel     Buy            $46    $49     $2.88   $2.98  
 $4.01   $3.96
 Bear Stearns*   Outperform     $46    $52     $3.00   $3.40  
 $4.00   $4.30
 Oppenheimer     Perform        --     --      $3.00   $3.25  
 $3.95   $4.15
 Lehman          Equal Weight   $47    $50     $2.80   $3.50  
 $4.00   $4.30
 UBS             Buy            $44    $47     $2.95   $3.65  
 $4.50   $4.75
 Credit Suisse   Neutral        $34    $40     $2.70   $3.40  
 $4.00   $4.40
 *Operating earnings estimates
  (Reporting by Ramya Dilip in Bangalore; Editing by Amitha