NEW YORK: Bank of America shares are among the cheapest in the industry despite concerns about a sputtering economy and questions whether the bank will need to raise more capital, Barron's said in its Aug. 15 edition.
The bank's stock price plunged 27 percent in the past three weeks and is half the level of its 52-week high in January amid worries it may need to raise an estimated $50 billion to cover more losses on toxic mortgages.
Shares of the company closed at $7.19 on Friday.
Barron's said the stock could rise as much as 35 percent, adding that while housing-bubble loans continue to weigh down the bank, it has made progress in that area. Additionally, BofA has improved its liquidity and cash.
"With tons of bad news priced into the stock, a few quiescent quarters may be all it takes to lift shares out of their funk," the financial magazine said.
Copyright Reuters, 2011
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