Stock of Bank of America (BAC) has taken a beating on Wall Street and is undervalued, according to Jack Mohr, Director of Research for Action Alerts PLUS. Mohr said the shares are trading at about a 20% discount to tangible book value. Mohr added that Bank of America has made an incredible amount of progress from a regulatory and capital efficiency perspective, but investors are trading the stock based on the company’s fundamentals last year. Mohr said a more comfortable level for the stock is $15 a share, and longer term he thinks $17 is a more realistic price. Mohr said Bank of America has more capital flexibility this year, and they can double their buybacks and dividends.
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