Bank of America (NYSE: BAC) stock rose over 3% in intraday trading following an upgrade from analysts at Wolfe Research.
Wolfe Research upgraded its rating on Bank of America shares from Peerperform to Outperform. The firm also set a new price target of $42.00 for BAC stock, suggesting further upside potential from its current levels. This upgrade comes on the heels of Bank of America’s consistent approach to responsible growth, which has started to yield benefits.
Formerly, the firm had maintained a cautious stance on the bank’s stock due to valuation concerns and perceived weaknesses in NII compared to peers. However, it now sees potential for improvement.
Wolfe Research notes that recent trends in asset repricing have led to a more resilient first-quarter NII for Bank of America. This suggests the early stages of an NII upturn, indicating potential for unique NII growth even in the face of declining interest rates.
Bank of America is showing clear signs of gaining market share in Trading and Investment Banking, according to Wolfe Research. The firm expects this growth trajectory to contribute to more stable fee growth amid a recovery in capital markets.
Wolfe Research highlights Bank of America’s discounted valuation and the potential to repurchase approximately 16% of its market capitalization by the end of 2025. This favorable valuation, combined with the bank’s strategic focus on shareholder returns, increases confidence in the bank’s prospects for sustained earnings per share growth over the coming years.
Bank of America (NYSE: BAC) Stock Reaction
At the time of this report, the price of BAC stock stands at $36.97, reflecting a 3.35% increase from the previous trading session. This week, its value has risen by 3.30%. Trading activity has seen 56,208,507 (56.20 million) shares change hands, higher than the average daily volume of 40.75 million.
Zabih Ullah is a seasoned finance writer with more than ten years of experience. He is highly skilled at analyzing market trends, decoding economic data, and providing insightful commentary on various financial topics. Driven by his curiosity, Zabih stays updated with the latest developments in the finance industry, ensuring that his readers receive timely and relevant news and analysis.
