Bank of America initiated with a Buy at Truist

Truist initiated coverage of Bank of America (BAC) with a Buy rating and $52 price target as part of a broader research note launching coverage of U.S. Large-Cap banks. Big banks are positioned to leverage embedded offense, cyclical recovery and capital flexibility to drive organic franchise expansion, double digit EPS growth, and attractive ROTCE – return on tangible common equity – over FY25 and FY26, the analyst tells investors in a research note. The gradual repricing of fixed rate assets and a return to retail deposit growth should also drive a 4%-5% net interest income growth for Bank Of America, producing above-average EPS growth and significant ROTCE expansion by 2026, the firm adds.