Thursday, May 7, 2009
Shares of Bank of America are surging, hours ahead of the expected announcement of bank stress test results, and after two analysts upgraded their views on the company.
Bank of America shares are up $1.92, or 15.1%, to $14.61 Thursday. Shares gained 17% Wednesday.
Morgan Stanley analyst Betsy Graseck and Robert W. Baird analyst David George both upgraded the stock and boosted their price targets amid reports the Charlotte, N.C.-based bank will need $34 billion based on the government's recent tests.
Each said that figure was better than expected and the bank will has multiple options to cover the shortfall.
The stress tests are being used to determine how banks would fare if economic conditions worsened.