Bank of America (BAC) Needs Higher Rates, Says Jim Cramer

We recently published 15 Fresh Stocks Jim Cramer Discussed.  Bank of America Corporation (NYSE:BAC) is one of the stocks Jim Cramer discussed.

Bank of America Corporation (NYSE:BAC)’s shares are up by 13% over the past year. Ahead of the earnings, TD Cowen raised the firm’s share price target to $66 from $64 and kept a Buy rating. TD Cowen pointed out that it expected the banking sector to perform well in the upcoming earnings season. HSBC’s action was bolder as it bumped the share rating to Buy from Hold and set a $50 share price target, as it commented that a pullback in the shares might provide an opportunity. Bank of America Corporation (NYSE:BAC)’s fourth quarter earnings report saw it post $28.53 billion in revenue and $0.98 in earnings per share. Both of these beat analyst estimates of $27.94 billion and $0.96. On the day of the report, the stock closed 3.8% higher, and Cramer wondered whether the tussle between the President and the Fed when it came to interest rates was to blame:

Pixabay/Public Domain

“David, Bank of America, cause they need the rates higher. That may have been one that you, you know Brian Moynihan did a very good job as CEO, but rates higher is not what I think the President wants.”

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Disclosure: None. This article is originally published at Insider Monkey.