RBC Capital has revised its price target for Bank of America (BAC, Financial), cutting it to $45 from the previous $50, but maintaining an Outperform rating on the stock following the bank's first-quarter earnings report that surpassed expectations.
The adjustment reflects the firm's belief in Bank of America's robust and diversified business model that effectively supports its operations during times of economic uncertainty. The analyst highlights the bank's core competency in accumulating deposits and utilizing this growth through lending as a strategy that is likely to yield stronger long-term earnings.
Furthermore, Bank of America's foundational low-cost deposit base is seen as a crucial advantage, with RBC Capital anticipating that this asset will be particularly beneficial over the upcoming year.
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 $47.50 with a high estimate of $57.00 and a low estimate of $33.90. The average target implies an upside of 25.03% from the current price of $37.99. 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 14.19% from the current price of $37.99. 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.
