Betsy Graseck, an analyst from Morgan Stanley, maintained the Buy rating on Bank of America. The associated price target was raised to $50.00.
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Betsy Graseck’s rating is based on several factors that indicate a positive outlook for Bank of America. The decision to increase the 2026 earnings per share estimate by 2% to $4.53 reflects expectations of higher fee income from investment and brokerage services, trading, and service charges. Additionally, a reduced share count is anticipated, although these gains are somewhat offset by higher expenses.
Betsy Graseck also raised the price target for Bank of America to $50, applying an 11x 2026 target price-to-earnings ratio, consistent with previous multiples. The bank’s average loan growth of 3% quarter-over-quarter and 7% year-over-year, which is double the industry average, further supports the Buy rating. These factors, combined with expectations of operating leverage and a modest decline in expenses, contribute to the positive recommendation.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $56.00 price target.