Bank of America's stock, trading well below its 52-week high, is being "massively undervalued" by investors, or so says an industry analyst.

Richard X. Bove, with Rochdale Securities LLC., wrote in a note to clients that Bank of America (NYSE: BAC) will see its stock price recover in even the worst-case scenario as earnings will override costs including troubled home loans plaguing the Charlotte, North Carolina-based financial institution.

The bank's stock has fallen from a 52-week high of $15.72 to its lowest level since early 2009. On the day the note was released, however, Bank of America's stock was up 3 percent, to $10.84 per share.The bank's stock also benefited from the announcement over the weekend that international regulators had come to agreement on required capital holding requirements for the world's largest financial institutions. Some had feared should requirements be more stringent than the additional 2.5% that will be required in coming years that Bank of America might have trouble meeting the demand.

"Under the bleakest of scenarios Bank of America's book value will rise in the next three years," wrote Bove, based in Florida, in a note to clients. "At some point the market will adjust to the company's real values."

Bank of America is the largest U.S. lender in terms of assets.

"For longer-term investors willing to accept less than desirable returns near-term, Bank of America is a very, very undervalued stock," Bove said.