Bank of America shares surged more than 11 percent on Wednesday after J.P. Morgan predicted the company would raise capital in the near future.

The surge comes a day after the bank's share price dropped to a 52-week low, increasing the tenor behind calls for the company to increase its assets. JPMorgan analyst Kabir Caprihan upgraded the company to neutral from underperform due to an increasing likelihood of Bank of America raising capital.

"The equity and credit markets are becoming increasingly clear in their message that the company needs to address the capital and mortgage issues; we think it is getting more difficult for management to ignore this sentiment," Caprihan wrote in a note. "In our view, this raises the likelihood of a credit-positive development, such as the announcement of a capital raise."

Caprihan's note comes after a Jeffries & Co. analyst and Business Insider's Henry Blodget both wrote that the Charlotte-based company needs to raise capital, if it hopes to rebound from its current stock woes. Jeffries estimated it needs to raise between $40 and $50 billion, while Blodget proposed a $100 to $200 billion capital increase.

Bank of America didn't take too kindly to Blodget's assertion, and attacked him personally in a response.

"Blodget is making exaggerated and unwarranted claims, which is what the Securities and Exchange Commission stated publicly when he was permanently banned from the securities industry in 2003," a Bank of America statement said.

Bank of America has staunchly disputed the need for it to raise more capital, harking on the company's estimated book value of $12.64 per share. In a note to investors on Wednesday, it affirmed its lack of interest in adding more common stock.

"We have a clear path to meet the new regulatory requirements under Basel III and we intend to meet these standards without having to issue additional common stock," the memo said.

Bank of America has been plagued by its purchase of mortgage lender Countrywide Financial right before the housing bubble burst. The company continues to face mounting losses, as well as expensive lawsuits like AIG's $10 billion suit, from the purchase.

Bank of America was trading up 9.52 percent, or 60 cents, to $6.90 at 1:35 p.m. on Wednesday.