Wells Fargo analyst Mike Mayo has maintained their bullish stance on BAC stock, giving a Buy rating today.
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Mike Mayo has given his Buy rating due to a combination of factors that highlight Bank of America’s strategic investments and growth potential. The CEO’s recent presentation emphasized the bank’s commitment to growth, particularly through improved loan growth and net interest income (NII), which are expected to enhance profitability. Despite weaker-than-expected investment banking performance, the bank’s extensive investments over the past decade are anticipated to yield significant stock benefits as they become more monetized.
Furthermore, Bank of America’s consistent deposit growth, driven by substantial investments in branch renovations and market expansions, has resulted in a steady increase in checking accounts with high average balances. The bank’s strategic focus on expanding its consumer deposits and wealth management services, along with international commercial expansion, positions it for long-term growth. Additionally, the potential for NII to exceed expectations due to higher commercial loan utilization and favorable economic conditions supports the positive outlook for the bank’s stock.
In another report released today, KBW also maintained a Buy rating on the stock with a $52.00 price target.
BAC’s price has also changed slightly for the past six months – from $46.080 to $44.730, which is a -2.93% drop .