Investment bank and financial services holding company Bank of America Corporation (NYSE: BAC) recently announced the launch of its new online payment solution, Pay by Bank, in collaboration with Banked Ltd. The feature will initially be available in the United Kingdom and subsequently in other regions in the future.
However, following the news, shares of the company dropped more than 1% to close at $47.41 in Monday’s extended trading session.
Details of the Launch
With this launch, the company aims to make online checkout simpler, faster and more secure. Moreover, the privacy of users remains majorly protected as no card details are required. Consequently, the company also reduces its data storage costs with streamlined reconciliation.
International head of Technology & Operations at Bank of America, Andrew McKibben, said, “The breadth and scale of our technology development comes from sustained strategic investment. We are proud to launch Pay by Bank and continue supporting clients with tools that can have a positive impact on their business.”
Recently, Wells Fargo analyst Mike Mayo assigned a Buy rating on the stock. The analyst, however, raised the price target from $63 to $66, which implies upside potential of 39.2% from current levels.
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 13 Buys, 5 Holds and 2 Sells. The average Bank of America price target of $52.58 implies that the stock has upside potential of 10.9% from current levels. Shares have gained 38.4% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on BAC. Further, 7.4% of portfolios tracked by TipRanks increased their exposure to BAC stock over the past 30 days.
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