Deutsche Bank Discusses Bank of America's Earnings (BAC)

Deutsche Bank has a Hold rating and a $14 price target on shares of Bank of America BAC after the company reported earnings this morning. In a note to investors, Deutsche Bank writes, "1Q EPS was $0.17 vs. our est of $0.16 and consensus of $0.26. The miss vs. consensus was likely due to higher mortgage-related hits, CVA/DVA and other one time/lumpy items (some of which was highlighted at its investor day last month). Separately, BAC announced a new CFO as the existing CFO is tending to a health-related family issue (but will remain as vice-chair). Is BAC making progress--yes, but ever so slowly in our view. Since Jan, BAC announced a settlement with the GSEs over mortgage repurchases, settled with a monoline insurer today, showcased the longer-term potential of the co at March's investor day and continues to show improving credit and mostly in line capital markets trends. However, more GSE putback hits were incl in 1Q results, mortgage hits going forward will likely remain very high for a prolonged period and other expense efforts won't be meaningful until 2H12 (per mgmt)." Shares of BAC are up 6 cents to $13.19, a gain of 0.46%.