Bank of America upgraded to Outperform from Peer Perform at Wolfe Research

Wolfe Research upgraded Bank of America to Outperform from Peer Perform with a $42 price target. While some of the bank’s net interest income pressures should persist in a “higher-for-longer” interest rate backdrop, Bank of America’s Q1results reflecting better asset repricing trends, the analyst tells investors in a research note. The firm believes we are now approaching the point of NII inflection where “under-earning” banks should post stronger gains following multiple years of underperformance. It believes underearning firms like Bank of America should not trade at a discount.