Bank of America's Ken Lewis testified at a U.S. House Oversight and Government Reform Committee hearing on the financial giant's acquisition of Merrill Lynch.
But Anthony Polini, bank analyst of Raymond James & Associates, said the hearing is more of a clearing of grievances—and recommended investors buy BofA stock.
“I’ve been following banks for more than 20 years and I’ve never seen a company come out of a recession with so much core earnings power and so much strength,” Polini told CNBC.
“Bank of America looks like an easy double in a year and it looks like a triple in 2 years from this level.”
A different take:
Polini said Bank of America had better-than-expected stress test results and already raised $32.9 billion in equity.
“We look at the core earnings power,” he said. “Going forth, the political risk factors, the regulatory risk factors, the economic risk factors — they’re all improving.”
Raymond James & Associates received non-investment banking securities-related compensation from Bank of America within the past 12 months.
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