Bank of America shares rally after the analyst said it was time to buy

Shares of Bank of America Corp. BAC,
+ 2.36%
rose 1.1% in premarket trading on Tuesday to an 11-month high after Citigroup analyst Keith Horowitz became optimistic, citing expectations that a bottom-up return on third-quarter net interest income will be higher. bigger than expected. Horowitz raised its rating to buy from neutral and its stock price at $ 37 from $ 31; the stock has not closed at $ 37 or more since October 2008. He said he believes BofA is one of the largest beneficiaries of shareholder return (share repurchases and dividends), which should resume in the next quarter. “[BofA] it is also more prevalent for consumers, which we believe will perform better in this credit cycle, given the stimulus programs, “Horowitz wrote. Shares have risen 28.8% in the last three months. until Monday, while the SPDR Financial Select Sector ETF XLF ETF,
+ 1.31%
rose 21.6% and the S&P 500 SPX,
+ 0.18%
gained 7.5%. Horowitz also updated PNC Financial Services Group Inc. PNC,
+ 1.34%
and Bank of New York Mellon Corp. BK,
+ 2.02%
buy from neutral.