Bank of America (NYSE:BAC) Price Target Cut to $56.00 by Analysts at TD Cowen

Bank of America (NYSE:BAC) had its target price dropped by TD Cowen from $60.00 to $56.00 in a report issued on Thursday, Benzinga reports. The brokerage currently has a “hold” rating on the financial services provider’s stock. TD Cowen’s price target would indicate a potential upside of 9.12% from the company’s previous close.

Several other equities research analysts have also recently commented on BAC. Rothschild & Co Redburn set a $72.00 target price on shares of Bank of America in a research report on Tuesday, October 6th. Royal Bank Of Canada reissued an “outperform” rating and set a $60.00 price objective on shares of Bank of America in a research report on Thursday. Oppenheimer cut shares of Bank of America from an “outperform” rating to a “market perform” rating in a research report on Tuesday, June 30th. Keefe, Bruyette & Woods lowered their target price on shares of Bank of America from $70.00 to $65.00 and set an “outperform” rating for the company in a report on Thursday. Finally, Evercore set a $62.00 price objective on Bank of America in a research note on Thursday, October 1st. Twenty equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $62.96.

Bank of America Stock Performance

Bank of America stock opened at $51.32 on Thursday. Bank of America has a twelve month low of $46.12 and a twelve month high of $65.22. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23. The firm has a fifty day simple moving average of $59.51 and a two-hundred day simple moving average of $56.69. The company has a market capitalization of $358.86 billion, a PE ratio of 11.74, a P/E/G ratio of 0.87 and a beta of 1.21.

Bank of America (NYSE:BAC) last issued its earnings results on Wednesday, October 14th. The financial services provider reported $1.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.10 by ($0.02). Bank of America had a return on equity of 12.20% and a net margin of 17.56%. The firm had revenue of $29.96 billion during the quarter, compared to the consensus estimate of $30.58 billion. During the same quarter in the prior year, the business posted $1.06 EPS. The firm’s revenue for the quarter was up 3.2% on a year-over-year basis. Research analysts expect that Bank of America will post 4.60 EPS for the current year.

Institutional Investors Weigh In On Bank of America

Hedge funds have recently modified their holdings of the business. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors increased its holdings in Bank of America by 15.5% in the 3rd quarter. C2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors now owns 13,743 shares of the financial services provider’s stock worth $748,000 after acquiring an additional 1,844 shares in the last quarter. Nvwm LLC grew its position in shares of Bank of America by 26.9% during the third quarter. Nvwm LLC now owns 60,942 shares of the financial services provider’s stock worth $3,317,000 after purchasing an additional 12,916 shares in the last quarter. Covenant Asset Management LLC boosted its stake in Bank of America by 32.7% in the 3rd quarter. Covenant Asset Management LLC now owns 31,416 shares of the financial services provider’s stock worth $1,710,000 after purchasing an additional 7,744 shares during the period. Viking Fund Management LLC lifted its holdings in shares of Bank of America by 5.8% in the third quarter. Viking Fund Management LLC now owns 275,000 shares of the financial services provider’s stock worth $14,968,000 after buying an additional 15,000 shares in the last quarter. Finally, HBW Advisory Services LLC increased its holdings in Bank of America by 98.1% in the 3rd quarter. HBW Advisory Services LLC now owns 18,664 shares of the financial services provider’s stock valued at $1,016,000 after acquiring an additional 9,241 shares during the last quarter. Institutional investors own 70.71% of the company’s stock.

More Bank of America News

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Despite the selloff, Bank of America received an upgrade from Robert W. Baird to “outperform” with a $62 price target, implying meaningful potential upside. Bank of America analyst upgrade
• Positive Sentiment: Keefe, Bruyette & Woods maintained an “outperform” rating, while lowering its price target to $65 from $70. The target remains well above BAC’s current level. Keefe Bruyette and Woods price target
• Positive Sentiment: Underlying businesses showed resilience: net interest income rose 8% year over year to $16.4 billion, average loans increased 6%, and Merrill Lynch’s fee-based advisory assets reached a record $1.9 trillion. Consumer banking and wealth management helped offset weaker trading activity.
• Neutral Sentiment: Bank of America ranked highly among U.S. mega-bank quantitative ratings, and all four major U.S. banks raised dividends this year. However, investors are comparing the strength of each bank’s capital cushion before assigning value to the payouts. Major banks dividend comparison
• Negative Sentiment: Third-quarter adjusted EPS was $1.08 versus the $1.10 consensus, while revenue of roughly $30.0 billion missed estimates near $30.6 billion. Investment-banking fees and sales-and-trading revenue weakened, expenses grew faster than revenue, and the provision for credit losses was $1.3 billion. BAC Q3 earnings analysis
• Negative Sentiment: The largest overhang is more than $1.2 billion in penalties for anti-money-laundering and sanctions-compliance failures, including missed reporting of more than $5 billion in suspicious transactions. The non-tax-deductible charge reduced quarterly EPS by approximately $0.17 and raised concerns about lingering remediation costs and management controls. Bank of America regulatory penalty
• Negative Sentiment: Bank of America is also hiring about 1,000 contractors to address software vulnerabilities exposed by Anthropic’s Mythos AI model. The effort, together with compliance remediation, added hundreds of millions of dollars to third-quarter costs. Investor-law firms have separately announced securities investigations, adding further reputational risk.
• Negative Sentiment: Broader conditions added pressure as hotter-than-expected inflation pushed Treasury yields higher and increased fears that interest rates may remain elevated, contributing to a wider market selloff.

About Bank of America

Bank of America Corporation (NYSE:BAC) is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.