BofA Trading Revenue Seen Up 15% in Second Quarter, CEO Says - Bloomberg.com
1 min read
The story
Bank of America CEO flagged 15% Q2 trading revenue growth at a conference, a hard forward-looking data point that cuts against today's -2% price action. The divergence between upbeat guidance and weak price action sets up a potential mean-reversion long into the Q2 print.
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The case — both sides
Angle
↑ LONG+5% target-4% stop2-4 weeks, into Q2 earnings print
Long BAC into Q2 print — CEO-guided 15% trading revenue growth is a hard catalyst being mispriced by today's -2% tape.
3 stocks · % change · 3 monthsaverage+12.7%
BAC+17.6%GS+9.8%MS+10.6%Average
Names in play
1
BAC100
2
GS48
3
MS40
The house read
Long BAC into Q2 print — CEO-guided 15% trading revenue growth is a hard catalyst being mispriced by today's -2% tape.
Wrong ifBroader macro selloff or credit quality deterioration (consumer spending softness showing up in card data) could overwhelm the trading revenue beat; lack of analyst consensus data means we can't confirm this is under-owned.
Published read · research, not advice