Shares of Bank of America Corp. BAC,
rose 1.1% in premarket trading on Tuesday to an 11-month high after Citigroup analyst Keith Horowitz turned bullish, citing expectations that the third-quarter fund rebound of net interest income will be higher than expected. Horowitz raised its rating to buy neutral and its stock price to $ 37, from $ 31; the shares have not closed at more than $ 37 since October 2008. He said he believes BofA is one of the biggest beneficiaries of the share return to shareholders (share repurchase and dividends), which should resume on next quarter. “[BofA] it is also more leveraged for the consumer, who we believe will perform better in this credit cycle given stimulus programs, “Horowitz wrote. Shares have risen 28.8% over the past three months to Monday , while the XLDR ETF of the selective financial sector SPDR,
has risen 21.6% and the S&P 500 SPX,
has gained 7.5%. Horowitz also updated PNC Financial Services Group Inc. PNC,
and Bank of New York Mellon Corp. BK,
buy from neutral.