Bank of America: Strong Financial Performance and Strategic Positioning Justify Buy Rating

Lim Rui Wen, an analyst from DBS, maintained the Buy rating on Bank of America (BAC – Research Report). The associated price target is $48.00.

Lim Rui Wen has given his Buy rating due to a combination of factors, primarily highlighting Bank of America’s robust financial performance and strategic positioning. The bank’s revenue and profit for the first quarter of 2025 exceeded expectations, driven by stronger-than-anticipated net interest income and trading results. This positive financial outcome is supported by the bank’s stable total allowances and management’s maintained guidance for net interest income in the fourth quarter of 2025.
Additionally, Bank of America’s strong retail franchise and its commitment to responsible growth contribute to its favorable outlook. The bank’s superior credit quality and resilient asset quality have consistently outperformed peers, as evidenced by its performance in the annual Fed stress tests. Despite potential recessionary risks and macroeconomic challenges, the bank’s strategic focus and market leadership in retail deposits and small business lending position it well for future growth. Consequently, Lim Rui Wen maintains a Buy rating with a revised target price of USD48, reflecting confidence in Bank of America’s growth trajectory and valuation.

According to TipRanks, Rui Wen is a 4-star analyst with an average return of 13.1% and a 79.17% success rate. Rui Wen covers the Financial sector, focusing on stocks such as OCBC, UOB, and Hdfc Bank.