Bank of America price target raised to $39 from $37 at Citi

Citi raised the firm’s price target on Bank of America to $39 from $37 and keeps a Neutral rating on the shares. The bank reported 13.5% return on average tangible common equity in 2023 and consensus estimates are calling for ROTCE in the 12%-13% range over the next few years, the analyst tells investors in a research note. The firm believes the bank is underearning on ROTCE by 200 basis points. It came away from a meeting with management incrementally more positive on Bank of America’s outlook as it believes the bank has levers in place to drive returns higher. Bank of America moves to the top of Citi’s stack rank on the money centers.