Bank of America Corp. is not as well capitalized as most other large banking companies and has "precious little wiggle room" before it may be forced to sell new stock, according to Wells Fargo & Co.'s Wachovia Capital Markets LLC.

Bank of America retains "sizeable exposures to what we would deem are worrisome assets," including $9.9 billion of residential construction and development loans and $111.5 billion of card and other revolving loans, Matthew Burnell, an analyst at Wachovia Capital Markets, wrote in a report issued Monday.

He initiated coverage of B of A's stock with an "underperform" rating and a valuation range of $7 to $8 a share.

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