Bank of America (NYSE: BAC) recently disappointed the market with its first-quarter earnings report as the stock fell 3.5% in a day. The nation's No. 2 bank by assets beat Wall Street estimates but reported a decline in net interest income due to higher deposit rates.

Overall deposits were down 7%, and charge-offs were up 26% from the previous quarter to $1.5 billion. This shows that the bank's loan portfolio appears to be weakening.

However, at least one Wall Street analyst sees a silver lining to the update. In the wake of the first-quarter report, Wolfe Research gave Bank of America an upgrade, from peer perform to outperform, with a price target of $42, implying a 14% gain in the stock.

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Source Fool.com