Deutsche Bank lowered its rating for Bank of America shares to hold from buy, citing the stock's full valuation and the risk of more government regulation.
"We still see improvement in underlying trends ... but this seems priced in (BAC is just below our target price) ... Given this, we see modest additional upside potential-unless macro conditions improve meaningfully (related to the economy and the political/regulatory backdrop). This is possible, but not our base case," analyst Matt O'Connor wrote in a note to clients Monday.
"While we don't view BAC shares as pricey, we also don't view the valuation as depressed."