BofA Boosted to 'Outperform' by KBW, $16.50 Target

Broker-dealer Keefe, Bruyette & Woods upgraded Bank of America to "outperform" Thursday and also boosted its price target on the stock to $16.50 from $12, Reuters reported.

KBW cited a stronger balance sheet and valuation and also said that recent raising of capital "takes away a level of uncertainty that kept us from being positive on the shares," Reuters said.

But overall KBW was cautious on big banks and said large-cap financials are "vulnerable to negative earnings surprises over the next year" because of higher-than-anticipated credit costs," Reuters said.

Shares of Bank of America rose 1.8 percent in before-hours trading.