Mike Mayo, an analyst from Wells Fargo, maintained the Buy rating on Bank of America (BAC – Research Report). The associated price target is $56.00.
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Mike Mayo has given his Buy rating due to a combination of factors that highlight Bank of America’s strong operational performance and growth potential. The bank is maintaining a steady course with its consumer and commercial operations, showing resilience in the face of macroeconomic risks such as tariffs. This stability is reflected in the bank’s ability to continue growing its core client base and loan demand, which is bolstered by positive consumer spending and commercial borrowing trends.
Furthermore, Bank of America is poised for significant growth in net interest income and earnings per share over the coming years, driven by its strategic investments and growth initiatives. These initiatives include expanding customer programs, tapping into new markets, and enhancing business banking opportunities. The bank’s impressive track record of consecutive quarters of net new checking account growth and its substantial deposit base at a low cost further reinforce its strong market position. Despite some investor concerns over potential trade-induced recession risks and shareholder sales, Mayo’s analysis suggests that Bank of America’s stock remains undervalued, presenting a compelling investment opportunity.
In another report released on May 2, Barclays also maintained a Buy rating on the stock with a $54.00 price target.