Photo: Lisa Du, Business Insider
Citigroup’s Keith Horowitz downgraded Bank of America to neutral from a buy today in a research report today. Horowitz’s reasoning in a nutshell:
BAC’s recent outperformance reflects the market’s increased comfort with its capital position, but at these levels we believe investor focus will shift to earnings, which have been weak.
The stock is currently trading just a dip below $8, and is down about 3.3% today.
DealJournal points out that prior to this Citi downgrade, the bank had enjoyed a string of positives this year—the bank posted strong fourth quarter results for 2011 last month, it is currently the fifth highest gainer on the S&P for 2012 and last week’s mortgage settlement could mean less legal problems for the bank.
Taking Citi’s report into consideration, could the response to the earlier positives be just too soon?