Bank of America faces earnings headwinds, says Credit Suisse
Bank of America (BAC), one of the world's largest financial services companies, is set to report earnings at the end of next week . According to a research note issued by analysts at Credit Suisse (CS), the numbers could be ugly. Bloomberg says that estimates of the bank's results, excluding one-time items, will be negative as a 10 percent jump in expenses related to bad loans will end up costing the bank more than $7 billion on the quarter.
After factoring in gains from selling assets, Bank of America's likely headline earnings per share of $0.32 will probably be closer to a loss of $0.15 per share from its core operations, the Credit Suisse report concludes. The firm has a "Neutral" rating and $12 target price on Bank of America's stock.