BUZZ — Street View: Bank of America's regulatory penalty is a hurdle, not a barrier
* Bank of America missed Q3 profit est due to trading business weakness; disclosed $1.2 bln penalty-related charge over failure to detect potential money-laundering * 25 analysts rate stock "buy" on average; median PT: $63 - data compiled by LSEG Show Me The Money * Barclays ("overweight," PT: $68) says settlement imposes no growth restrictions; spending on anti-money laundering (AML) remediation, staff already factored into $18.5 bln quarterly adj expense base * RBC Capital Markets ("outperform," PT: $60) says stronger balance sheet should support resilient credit quality over next year; recent Bank Secrecy Act/AML settlement an overhang * Jefferies ("buy," PT: $60) says consent-order costs already built into expenses and guidance; outlook negative, but not as severe as market reaction implies * TD Cowen ("hold," PT: $56) says there is certainly a "show me" element to the story; net interest income outlook strong and durable, but fee income view needs more faith (Reporting by Akriti Shah in Bengaluru) ((akriti.shah@thomsonreuters.com; X, formerly Twitter: @AkritiShahh)
* Bank of America missed Q3 profit est due to trading business weakness; disclosed $1.2 bln penalty-related charge over failure to detect potential money-laundering * 25 analysts rate stock "buy" on average; median PT: $63 - data compiled by LSEG Show Me The Money * Barclays ("overweight," PT: $68) says settlement imposes no growth restrictions; spending on anti-money laundering (AML) remediation, staff already factored into $18.5 bln quarterly adj expense base * RBC Capital Markets ("outperform," PT: $60) says stronger balance sheet should support resilient credit quality over next year; recent Bank Secrecy Act/AML settlement an overhang * Jefferies ("buy," PT: $60) says consent-order costs already built into expenses and guidance; outlook negative, but not as severe as market reaction implies * TD Cowen ("hold," PT: $56) says there is certainly a "show me" element to the story; net interest income outlook strong and durable, but fee income view needs more faith (Reporting by Akriti Shah in Bengaluru) ((akriti.shah@thomsonreuters.com; X, formerly Twitter: @AkritiShahh)