Bank of America believes that their shares are cheap and to show that the company intends to make the largest buy back in its history.
Only five months after the bank announced it plans to buy $12 billion worth of shares. in a one-year period, the management presented its new share buyout plans for another $5bn on Tuesday. until June 2018.
Of course, the bank also expects a rather good growth in the banking sector in 2018. taking into account progress in US tax reform that aims to improve US growth and allow businesses to pay lower taxes. Financial companies are already feeling the positive effects of a successful tax law, and have led the S & P500 to the highest growth in the last week.
Where is it worthwhile to get into the upside trend of financial companies through Bank Of America?
Taking into account the strong foundation and upward trend, we expect the share price to make shallow adjustments, reaching the zone around $27.00 is best for positioning with long positions with SL: $25.00.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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