Paulson & Co told its clients that Bank of America (BAC) stock will double in the next two years.
In a quarterly letter to clients, Paulson said he expects the bank to rise considerably after writedowns ease up:
Bloomberg: “Banks will have passed the current writedown cycle and have visibility for growth in 2012,” the letter said. Bank of America dropped to $2.53 in February amid concern that the U.S. might seize banks that ran short on capital. While the bank “has risen from when we purchased the stock, we believe considerable upside remains,” the letter said.