Bank of America Corp (NYSE:BAC) Stock Capable of Appreciating 50%

January 25, 2017

Founder and Chairman Mark Boyar of Boyar Value Group says Bank of America Corp (NYSE:BAC) could see a number of catalysts that would positively increase the share price up to 50%, even after the post-election run-up of banking stocks.

Even though these stocks have run up spectacularly subsequent to the Trump election, we think that, over the next couple of years, they can be among the best-performing groups. Because they have run up so much, I would advocate perhaps taking an initial position and buy more as these stocks perhaps retrace some of the gains that they’ve made over the last month or two.

Take a stock like Bank of America, which is a stock we’ve liked for a number of years. The stock has run from $16 to $22 in a relatively short period of time. But it traded at $13 to $16 for at least a couple of years. So although it had its run — and the run came very, very fast — it sort of made up for lost time.

If we’re right — and we believed this prior to Trump being elected that Bank of America had 2.25 to 2.50 in earnings power. However, as a result of the widening of the yield curve, and possibly a significant decline in their cost of business, their earnings power could be higher than the 2.50, and if that occurs, there is no reason why their stock can’t appreciate 50% or more over the next two to three years.

Mark Boyar