Morgan Stanley Removes Bank Of America From "Best Ideas" List
From Morgan Stanley:
BAC.N, Bank of America ($11.54) /Remain Overweight as Catalysts Pushed
Forward: Removing from Best Ideas
Betsy.Graseck@morganstanley.com, Cheryl.Pate, Michael.Cyprys
Stock selection committee, which maintains our Best Ideas list, is looking for stocks with near-tern catalysts occurring over the next 1-2 quarters. Our catalysts, 2-4 quarters out, is longer-tailed than what the committee is looking for in the Best Ideas list. As a result, stock selection committee determined that BAC doesn’t fit a key criterion for the Best Ideas List. We remain OW as BAC offers an attractive risk/reward profile and the most upside potential in our coverage universe. Our OW is predicated on these catalysts: 1) stabilizing loan balances and NII in 2q/3q 11; 2) capital management in 3q/4q11; 3) continued credit improvement; and 4) stabilization of reps/warranties claims.