Seaport Global analyst James Mitchell maintains $Bank of America (BAC.US)$ with a buy rating, and maintains the target price at $48.
According to TipRanks data, the analyst has a success rate of 71.1% and a total average return of 10.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Bank of America (BAC.US)$'s main analysts recently are as follows:
A rebound in capital markets contributed to Bank of America's earnings per share surpassing expectations by 7%. The company experienced revenue gains across various segments including investment banking, fixed income, currencies, commodities trading, equities markets, and wealth management. Anticipations of increased fee income, spurred by trading and wealth management activities, alongside growth in net interest income due to deposit expansion, have led to an upward revision of the earnings per share forecast for 2025.
The company's earnings report suggested positive forecasts for net interest growth by 2025, strong organic growth, beneficial leverage to an increased markets fee pool, and moderate expense growth, all of which merited a favorable response. However, it's noted that the share price increase of 15% since early August might have already reflected these factors.
Bank of America's net interest income in the third quarter reached $14.1 billion, marking a 1.8% increase from the previous quarter, surpassing the modest 1.1% increase that was anticipated. This positive trend is expected to carry forward into the next quarter and onwards. Despite the ongoing volatility in the forward curve, which may cause some uncertainty in projecting future net interest income, analysts suggest that investors should concentrate on the broader perspective of potential post net interest income drag. Specifically, there is a solid base for gradual and consistent positive operating leverage, even as capital markets activity continues to be below expected levels.
Note:
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