Bank of America Corp.’s stock climbed 2.2% in active trade Friday, after analyst Mike Mayo at CLSA did an about face on the banking giant, turning to bullish from bearish, citing attractive valuation and limited downside risk. With volume of of about 60 million shares, it was the most-active stock on the NYSE. Mayo raised his rating to outperform, after being at sell since at least February 2013, and lifted his stock price target to $16, or about 16% above current levels, from $15. Mayo said BofA’s stock was trading at recession prices, even without a recession. “BAC stock trades below tangible book value, which is worse than the recessions in the early 1990s and early 2000s,” Mayo wrote in a note to clients, despite a much strong balance sheet. He said BofA and the banking industry has become much more resilient–the Federal Reserve’s stress tests have helped–which means BofA could grow book value even in a recession. The stock has tumbled 18% so far this year, while the S&P 500 has lost 5.9%.
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