Analyst Richard Ramsden of Goldman Sachs maintained a Buy rating on Bank of America, with a price target of $58.00.
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Richard Ramsden has given his Buy rating due to a combination of factors that highlight Bank of America’s promising financial outlook. The bank has set ambitious medium-term targets, including a Return on Tangible Common Equity (ROTCE) that could exceed the firm’s overall target if divisional goals are met. This potential for higher ROTCE, alongside a stable Common Equity Tier 1 (CET1) ratio, suggests a strong capital position.
Additionally, Bank of America has reiterated its guidance for Net Interest Income (NII) growth, projecting a 6-7% year-over-year increase for 2025, which aligns with previous expectations. The bank’s efficiency ratio target and operating leverage improvements further indicate a focus on cost management, while the projected growth in earnings per share (EPS) underscores a positive earnings trajectory. These factors collectively support Ramsden’s optimistic outlook on Bank of America’s stock.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $64.00 price target.
BAC’s price has also changed moderately for the past six months – from $41.120 to $52.450, which is a 27.55% increase.