UPDATE: Citi Comments on Bank of America After Buffett's Private Stimulus

Citi has published a research report on Bank of America (NYSE: BAC) after Warren Buffett infused $5B into the company.

In the report, Citi wrote, "Berkshire will invest $5 bil in BAC, purchasing $5 bil of 6% preferred stock plus 10-year warrants for 700 mil shares at a $7.14 strike price. The fair value of the warrants (estimated $2 billion) is immediately additive to GAAP common equity and Basel 1 Tier 1 common, though is ineligible under Basel 3 Tier 1 common."

Citi rated Bank of America a Buy with a price target of $14.00. Bank of America closed Thursday at $7.65.