ETF Trends
ETF Trends

Financial exchange traded funds followed Bank of America (NYSE: BAC) shares higher Friday as one Wall Street analyst slightly raised his 2011 profit estimate for the banking giant.

Bank of America and Financial Select Sector SPDR Fund (NYSEArca: XLF) were both up fractionally. B. of A. accounts for 6.3% of the sector ETF and is among its largest holdings.

Evercore Partners boosted its 2011 earnings estimate for B. of A. by 2 cents to $1.12 a share. Andrew Marquardt said he tweaked his estimates for market-sensitive banks.

“For Bank of America we are raising our 2011 estimates mainly on market share gains in capital markets/underwriting activity (while trading volumes are still weak),” the analyst said in a note.

Evercore has an overweight rating on B. of A., saying it expects the stock’s valuation gap relative to peers to “narrow as management continues to stabilize its franchise, realizes benefits of multiple deals, builds a new culture, and delivers on earnings potential.”

Showing Page 1 of 2