Analyst backtracks on Bank of America, says upgrade is ‘a mistake’

Barely a month after upgrading Bank of America Corp to a “buy”, Odeon Capital analyst Dick Bove is reversing course. — Bloomberg

WASHINGTON: Swaps traders aren’t the only ones on Wall Street rethinking their aggressive bets on interest rate cuts. Barely a month after upgrading Bank of America Corp to a “buy”, Odeon Capital analyst Dick Bove is reversing course.

“The theory was that interest rates would decline increasing the bank’s real book value. This implied a higher stock price,” Bove wrote in a note to clients, cutting his rating on Bank of America to a “hold” Tuesday. “I now think that the rating adjustment was a mistake.”