Here’s what Wall St. experts are saying about these banks ahead of earnings

Morgan Stanley (MS) and Bank of America (BAC) are scheduled to report earnings on October 15. What to watch for:

UPSIDE POTENTIAL: Earlier this month, BMO Capital initiated coverage of Morgan Stanley with an Outperform rating and $180 price target. The company appears a high-quality, less-cyclical play on deregulation, with meaningful upside from a capital markets recovery, the firm tells investors in a research note. While valuation levels are challenging, the combination of deregulation benefits and incremental net new asset growth from a capital markets recovery provide a compelling case for upside potential, BMO added.

GROWTH IN EARNINGS: More bullish on the name, Erste Group upgraded Bank of America to Buy from Hold. The firm says the bank’s revenues will increase in 2026, while “significant” growth in earnings is expected for this year and next. The shares are reasonably valued at current levels and have upside potential, Erste Group tells investors in a research note.

TARGET RAISES: Last week, UBS raised the firm’s price target on Neutral-rated Morgan Stanley to $165 from $156 and on Buy-rated Bank of America to $57 from $55. Bank stocks delivered strong Q2 gains, with share price appreciation outpacing estimate revisions by roughly fivefold, driven by deregulation, improving capital markets activity, and solid loan growth, the firm tells investors in a research note. The Fifth Third (FITB)/Comerica (CMA) merger may reignite interest in regional banks, particularly if management signals a rebound in middle-market C&I lending and net interest margin improvement from a steepening yield curve, though selectivity is warranted after the recent rally, UBS says.

POTENTIAL FOR BEAT & RAISES: Evercore ISI raised the firm’s price target on Bank of America to $55 from $49 and keeps an Outperform rating on the shares. Big banks had “a stellar summer,” with stocks rallying about 20% over the season, the firm noted. While some banks hinted at a strong quarter, the firm sees potential for “beat & raises,” especially for JPMorgan (JPM) and Goldman Sachs (GS), though it notes that Citi (C) might face a downward revision due to its Banamex stake sale.