While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.
What: Shares of Bank of America (NYSE: BAC ) gained 1.6% today after Deutsche Bank upgraded the banking gorilla from hold to buy.
So what: Along with the upgrade, analyst Matt O'Connor boosted his price target to $18 (from $16.50), representing about 15% worth of upside to yesterday's close. So while momentum traders might be turned off by Bank of America's price weakness in recent months, O'Connor's call could reflect a sense on Wall Street that the concerns surrounding its growth trajectory are becoming overblown.
Now what: According to Deutsche, Bank of America's risk/reward trade-off is rather attractive at this point. "We think the most meaningful negative catalysts have been identified and largely priced in," said O'Connor. "From here, Bank of America is well-levered to a potential pickup in capital markets revenues, higher interest rates, and an improving US economy." When you couple that upbeat outlook with Bank of America's cheapish price-to-book of 0.8, it's tough to disagree with Deutsche's bullishness.
Bank of America + Apple? This device makes it possible.
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its destined to change everything from banking to health care. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!