Yesterday CNBC’s Charlie Gasparino broke the news that the CEO of Bank of America is looking to make a "transformational deal" by acquiring a brokerage or insurance company. Of course, everyone wants to be transformational, but no one really wants to pay for it. So how do you get transformation a cut-rate prices? Downgrade the industry!
That at least is a theory voiced by TickerSense today.
This morning we came in to see that the brokerage analyst for Bank of America lowered his estimates on the group. Skeptics may look at this and think that this analyst is only doing a little sucking up so he can get his boss a better price on an acquisition. We’ll hold off for now, but if their insurance analyst lowers his EPS forecasts for that group in the next few days, then we’ll get suspicious.
Sucking Up To The Boss? [TickerSense]