Bank of America Rating Upgraded to Strong Buy with Higher Price Target

Morgan Stanley's Betsy Graseck upgraded their rating on Bank Of America (NYSE: BAC) from Hold to Strong Buy on 2024/01/30. The analyst also raised their price target by 28.1% from $32 to $41.

Graseck's decision to upgrade Bank of America's rating and increase the price target came as part of a sector review note covering their Financial Services (Large-Cap Banks) portfolio. The analyst explained that the upgrade was based on the belief that "it looks like the Basel endgame will be lightened." This development is expected to pave the way for a significant increase in buybacks by large-cap banks, as they currently hold the highest excess capital levels ever seen, coinciding with a rebound in the capital markets.

Another analyst, Chris Kotowski from Oppenheimer, also issued an update on Bank of America on the same day. Kotowski raised their price target by 2%, from $49 to $50, while maintaining their Buy rating on the stock.

According to data from WallStreetZen, 62.5% of top-rated analysts currently rate Bank of America as a Strong Buy or Buy, while 25% see it as a Hold. The remaining 12.5% either recommend or strongly recommend selling the stock.

Analysts' consensus forecast for Bank of America indicates that the company is expected to deliver earnings per share (EPS) of $4.18 in the upcoming year. If these predictions hold true, it would represent a 16.2% increase in EPS on a year-over-year basis.

In terms of stock performance, Bank of America has seen a 27.1% increase in its share price since its last quarterly report on September 30, 2023. However, on a year-over-year basis, the stock is down 1.4%. During this period, Bank of America has been trailing behind the performance of the S&P 500, which has experienced a decline of 22.6%.

It is worth noting that Betsy Graseck, the analyst who upgraded Bank of America's rating, is ranked in the bottom 4% out of 4,462 Wall Street analysts by WallStreetZen. Graseck has an average return of -2.4% and a win rate of 39.1%. The analyst specializes in sectors such as Industrials and Consumer Cyclical, among others.

Bank of America Corporation, founded in 1998, is an investment bank and financial services holding company. It is the second-largest banking institution in the U.S. and the eighth-largest bank in the world. The company's primary financial services include commercial banking, wealth management, and investment banking. Bank of America is headquartered in Charlotte, NC.

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WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.