Analyst Expectations For Bank of America's Future

In the latest quarter, 22 analysts provided ratings for Bank of America BAC, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $50.36, with a high estimate of $57.00 and a low estimate of $42.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 3.19%.

Interpreting Analyst Ratings: A Closer Look

A clear picture of Bank of America's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|-----------------------|---------------|---------------|--------------------|--------------------| |Stephen Biggar |Argus Research |Lowers |Buy | $47.00|$53.00 | |Gerard Cassidy |RBC Capital |Lowers |Outperform | $45.00|$50.00 | |David Konrad |Keefe, Bruyette & Woods|Lowers |Outperform | $52.00|$55.00 | |Erika Najarian |UBS |Raises |Buy | $50.00|$46.00 | |Scott Siefers |Piper Sandler |Lowers |Neutral | $42.00|$45.00 | |John McDonald |Truist Securities |Lowers |Buy | $47.00|$50.00 | |Jason Goldberg |Barclays |Lowers |Overweight | $54.00|$58.00 | |Betsy Graseck |Morgan Stanley |Lowers |Overweight | $47.00|$56.00 | |John McDonald |Truist Securities |Lowers |Buy | $50.00|$53.00 | |Vivek Juneja |JP Morgan |Lowers |Overweight | $43.50|$49.50 | |Glenn Schorr |Evercore ISI Group |Lowers |Outperform | $48.00|$51.00 | |Keith Horowitz |Citigroup |Lowers |Buy | $50.00|$54.00 | |Betsy Graseck |Morgan Stanley |Lowers |Equal-Weight | $56.00|$57.00 | |David George |Baird |Raises |Outperform | $50.00|$45.00 | |Betsy Graseck |Morgan Stanley |Raises |Equal-Weight | $57.00|$56.00 | |Chris Kotowski |Oppenheimer |Raises |Outperform | $56.00|$55.00 | |Vivek Juneja |JP Morgan |Raises |Overweight | $49.50|$48.00 | |Scott Siefers |Piper Sandler |Lowers |Neutral | $49.00|$50.00 | |Betsy Graseck |Morgan Stanley |Raises |Equal-Weight | $56.00|$54.00 | |Chris Kotowski |Oppenheimer |Raises |Outperform | $55.00|$54.00 | |John McDonald |Truist Securities |Raises |Buy | $53.00|$52.00 | |Glenn Schorr |Evercore ISI Group |Lowers |Outperform | $51.00|$53.00 |

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Bank of America. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Bank of America compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Bank of America's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Bank of America's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Bank of America analyst ratings.

Get to Know Bank of America Better

Bank of America is one of the largest financial institutions in the United States, with more than $3.2 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, retail lending products, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does its private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries but is primarily US-focused.

Bank of America's Financial Performance

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Bank of America's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 15.43%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 25.25%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Bank of America's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.35%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.19%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Bank of America's debt-to-equity ratio is below the industry average. With a ratio of 1.2, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.