With a market cap of $358.7 billion, Bank of America Corporation (BAC) is a leading financial services company that offers a wide range of products and services across four key segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets. Based in Charlotte, North Carolina, it serves individuals, businesses, and governments globally.
Shares of the nation's second-largest bank have outperformed the broader market over the past 52 weeks. BAC has increased 34.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.8%. On a YTD basis, shares of BAC are up 6.1%, compared to SPX’s 2.8% gain.
In addition, BAC has slightly outpaced the Financial Select Sector SPDR Fund’s (XLF) 32.1% return over the past 52 weeks.
Despite Bank of America's better-than-expected Q4 EPS of $0.82 and net revenue of $25.3 billion, shares fell marginally due to concerns over its worsening credit quality, with a 32% increase in provisions for credit losses and a 23% rise in net charge-offs. Additionally, while net interest income (NII) grew, there were concerns about the potential impact of rising non-interest expenses, with a projected 2% - 3% increase for 2025. The market also reacted negatively to a slight increase in non-performing loans and leases.
For the fiscal year, ending in December 2025, analysts expect BAC’s EPS to grow 11.9% year-over-year to $3.67. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 23 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, four “Moderate Buys,” and three “Holds.”
This configuration is more bullish than three months ago, with 13 “Strong Buy” ratings on the stock.
On Jan. 18, Evercore ISI lowered its price target on BAC to $51 while maintaining an "Outperform" rating, citing strong revenue growth and a solid 2025 outlook. However, the firm reduced its FY25 and FY26 EPS estimates due to anticipated higher expense pressure, which contributed to a slight decline in BAC’s shares.
As of writing, BAC is trading below the mean price target of $52.43. The Street-high price target of $59 implies a potential upside of 26.2% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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