On Oct 16, major Wall Street analysts update their ratings for $Bank of America (BAC.US)$, with price targets ranging from $45 to $53.
Morgan Stanley analyst Betsy Graseck maintains with a buy rating, and adjusts the target price from $47 to $48.
Goldman Sachs analyst Richard Ramsden maintains with a buy rating.
Barclays analyst Jason Goldberg maintains with a buy rating, and maintains the target price at $53.
Wells Fargo analyst Mike Mayo maintains with a buy rating, and maintains the target price at $52.
Evercore analyst Glenn Schorr maintains with a buy rating, and adjusts the target price from $46 to $45.
Furthermore, according to the comprehensive report, the opinions of $Bank of America (BAC.US)$'s main analysts recently are as follows:
Bank of America's earnings per share surpassed expectations by 7%, fueled by a recovery in the capital markets. The bank also reported higher than anticipated revenues across various segments including investment banking, fixed income, currencies and commodities (FICC) trading, equities trading, and wealth management. An increase in fee income, attributed to trading and wealth management, along with an uptick in net interest income due to deposit growth, has led to an enhanced earnings forecast for 2025.
Bank of America's Q3 earnings surpassed estimates, driven by net interest income and fee income that exceeded forecasts. Concurrently, expenses and provisions for credit losses aligned with earlier commentary. A lower-than-expected tax rate provided additional benefit, while the pace of share buybacks persisted from the previous quarter.
The firm believes that Bank of America's earnings report, which indicates positive prospects for 2025 net interest growth, consistent organic growth, advantageous positioning in relation to an increased markets fee pool, and moderate expense growth, warranted a favorable response. However, it suggests that the positive developments might have already been reflected in the stock's 15% rise since early August.
Bank of America's net interest income in the third quarter reached $14.1 billion, marking a 1.8% increase from the previous quarter, which surpasses the 1.1% anticipated due to day count. This positive inflection is projected to persist into the fourth quarter and onwards. Although volatility in the forward curve is not expected to subside soon, leading to continued complexity in quantifying net interest income growth, it is suggested that investors concentrate on the broader potential after net interest income pressure subsides. Specifically, the opportunity for gradual but consistent positive operating leverage is highlighted, even as capital markets activities remain below typical levels.
Here are the latest investment ratings and price targets for $Bank of America (BAC.US)$ from 7 analysts:
Note:
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