A pair of analysts cut their profit estimates on Bank of America Corp. on Monday, noting the potential for higher loan losses in the coming year.

Deutsche Bank analyst Mike Mayo chopped his 2009 estimate by $1.15 to $1.35 per share, due to expectations for higher credit costs across all businesses and lower investment banking revenue. Analysts surveyed by Thomson Reuters, on average, forecast earnings of $2.02 per share.

Mayo also cut his price target on the stock to $17 from $26.

"We continue to have a downward bias to earnings, especially as U.S. unemployment is expected to increase through much of 2009," wrote Mayo, who maintained a "Hold" rating on the shares.

Fox-Pitt Kelton analyst Andrew Marquardt also cut his estimates on the Charlotte, N.C.-based bank. He expects fourth-quarter earnings of 38 cents per share, down from a prior estimate of 54 cents. His 2008 estimate is now $1.71 per share, down from $1.87. Marquardt also sliced his 2009 estimate to $1.55 from $2.38 per share.

Marquardt lowered his price target on the stock to $23 from $29, but raised his rating on the shares to "Outperform" from "In Line," noting the bank's increased earnings potential from its acquisition of brokerage Merrill Lynch & Co., which closed last week.

Though the bank's asset quality is still uncertain, Marquardt said Bank of America seems to be "ahead of the curve" in recognizing credit losses in certain problem portfolios.

Bank of America shares slipped 9 cents to $14.24 in premarket trading. Shares lost 66 percent in 2008.

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