The financial institution is projecting its Net Interest Income (NII) for the fourth quarter to fall between $15.5 billion and $15.7 billion, marking a significant 6%-7% increase for the year. This optimistic outlook reflects the bank's solid asset quality, which is expected to remain stable in the near term.
Furthermore, the lender anticipates a potential decline in net charge-offs by the second quarter, indicating a positive trend in managing credit risk. The organization also reports a robust pipeline in its investment banking sector, although many clients are awaiting further clarity before proceeding with new deals.
The bank has observed a notable shift in customer behavior, with a majority of new accounts being opened via digital platforms in the first quarter. Additionally, the financial institution projects a full-year tax rate of 11% to 13%, excluding any atypical items.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Bank of America Corp (BAC, Financial) is $48.13 with a high estimate of $58.00 and a low estimate of $33.90. The average target implies an upside of 31.26% from the current price of $36.67. More detailed estimate data can be found on the Bank of America Corp (BAC) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Bank of America Corp's (BAC, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Bank of America Corp (BAC, Financial) in one year is $43.38, suggesting a upside of 18.3% from the current price of $36.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Bank of America Corp (BAC) Summary page.
