Street View: Bank of America's regulatory penalty is a hurdle, not a barrier
BUZZ-Street View: Bank of America's regulatory penalty is a hurdle, not a barrier ** Bank of America BAC.N missed Q3 profit est due to trading business weakness; disclosed $1.2 bln penalty-related charge over failure to detect potential money-laundering
** 25 analysts rate stock "buy" on average; median PT: $63 - data compiled by LSEG
SHOW ME THE MONEY
** Barclays ("overweight," PT: $68) says settlement imposes no growth restrictions; spending on anti-money laundering (AML) remediation, staff already factored into $18.5 bln quarterly adj expense base
** RBC Capital Markets ("outperform," PT: $60) says stronger balance sheet should support resilient credit quality over next year; recent Bank Secrecy Act/AML settlement an overhang
** Jefferies ("buy," PT: $60) says consent-order costs already built into expenses and guidance; outlook negative, but not as severe as market reaction implies
** TD Cowen ("hold," PT: $56) says there is certainly a "show me" element to the story; net interest income outlook strong and durable, but fee income view needs more faith
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com ; X, formerly Twitter: @AkritiShahh))
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