June 12 (Reuters) - Bank of America Corp (BAC.N) is expected to repay all federal bailout money by early 2010, said Stifel Nicolaus, which raised its price target on the stock by $4 to $22.
Stifel expects Bank of America to pay back $25 billion in Troubled Asset Relief Program preferred stock by late 2009 and the remaining $20 billion in early 2010.
The brokerage lowered its second-quarter earnings estimate for the company to 1 cent a share from 11 cents per share, partly to reflect the repayment of TARP money.
Stifel also lowered its 2009 earnings estimate for Bank of America to 77 cents a share from 83 cents per share, but maintained a “buy” rating on the stock.
Bank of America shares were up about 4 percent at $13.55 in Friday morning trade on the New York Stock Exchange. (Reporting by Santosh Nadgir in Bangalore; Editing by Anne Pallivathuckal)