Will Bank Of America Stock Reach $50 By 2022?
Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.
We surveyed a group of over 800 investors on whether shares of Bank of America Corp (NYSE:BAC) will reach $50 by 2022.
Bank Of America Stock Forecast
Bank of America provides banking and financial products and services for individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments worldwide.
In the wake of the financial crisis of 2007-2008, Bank of America underwent a downsizing program from 2011 through 2014 to improve its balance sheet, reduce risk, streamline its operations and focus more on mobile banking.
More recently, shares of several global financial services companies are trading higher amid a rise in yields.
The confirmation of Joe Biden as U.S. President and recent Democratic victories in Georgia has also helped alleviate some political gridlock concerns and raise additional stimulus optimism. Better-than-expected jobless claims last week helped lift market sentiment and bank stocks have been increasing in sympathy with the positive news.
See Also: Best Bank Stocks.
Bank of America trades around $33, off the 52-week low of $18, and 54% of Benzinga readers believe Bank of America will reach $50 per share over the next year.
Many respondents noted as long as stimulus funds continue to get distributed among Americans, there will be liquidity in the economy. Consumers would be poised to spend their money and keep some at their bank of choice, including Bank of America, which has a sizable share of the consumer market in terms of deposits.
The idea is this would allow Bank of America to have liquidity, in order to loan more money. Hence, higher profits leading to the demand for its shares.
In general, respondents to our study also expressed confidence in CEO Brian Moynihan, whose leadership helped bring Bank of America back from the verge of extinction following the financial crisis of 2007-2008. Moynihan has served as CEO since 2010.
This survey was conducted by Benzinga in January 2021 and included the responses of a diverse population of adults 18 or older.
Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 800 adults.
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