Wolfe Research upgrades BofA to 'outperform' on valuation

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Wolfe Research analyst Steven Chubak upgraded Bank of America Corp. to "outperform" from "peer perform" on valuation.

Chubak said that Bank of America is better "insulated" from capital markets normalization.

The price target was increased to $36 from $27. The EPS estimates were increased to $2.24 from $2.03 for 2021 and to $2.78 from $2.61 for 2022.

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Wedbush analyst Peter Winter downgraded Birmingham, Ala.-based Regions Financial Corp. to "neutral" from "outperform" and removed it from the best ideas list.

"As we enter 2021, there will be challenges to generating positive operating leverage; which should be the case for most banks," the analyst said.

The 12-month price target was reduced to $19.00 from $20.00. The EPS estimates for 2021 and 2022 were unchanged at $1.57 and $1.69, respectively.