BofA estimate trimmed after GSE settlement

|About: Bank of America Corporation (BAC)|By:, SA News Editor

Raymond James' Anthony Polini cuts his Q1 EPS estimate by $0.09 to $0.30 per share after Bank of America (BAC +1.5%) says its will take a charge of $0.21 per share to reflect its MBS settlement with the GSEs.

Polini's outlook, however, remains well above the Street estimate of $0.28 which likely does not reflect the settlement. He retains an Outperform rating on the stock with $20 price target, based on 12.5x 2015 earnings, noting the country's 40 largest banks trade at 13x 2015 estimates.