Bank of America (NYSE:BAC) Given New $65.00 Price Target at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods lowered Bank of America’s price target from $70 to $65 while maintaining an “outperform” rating, implying 26.45% potential upside from the cited share price.
• Analysts reported quarterly EPS of $1.08, below the $1.10 consensus, while revenue of $29.96 billion also missed expectations; the company’s consensus rating remains “Moderate Buy” with a $63.61 target price.
• Despite solid underlying trends in loans, deposits and net interest income, Bank of America faces pressure from weaker investment-banking and trading revenue, higher credit-loss provisions, and more than $1.2 billion in regulatory penalties tied to compliance failures.

Bank of America (NYSE:BAC) had its target price dropped by analysts at Keefe, Bruyette & Woods from $70.00 to $65.00 in a research note issued on Thursday, Benzinga reports. The firm presently has an "outperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price objective points to a potential upside of 26.45% from the company's current price.

A number of other equities research analysts also recently issued reports on the stock. Jefferies Financial Group cut their price objective on shares of Bank of America from $75.00 to $70.00 and set a "buy" rating for the company in a research report on Thursday, September 24th. Weiss Ratings restated a "buy (b)" rating on shares of Bank of America in a research note on Tuesday, July 21st. Royal Bank Of Canada reaffirmed an "outperform" rating and issued a $60.00 target price on shares of Bank of America in a report on Thursday. Truist Financial lowered their target price on Bank of America from $65.00 to $62.00 and set a "buy" rating on the stock in a research report on Thursday, October 1st. Finally, Morgan Stanley reissued an "overweight" rating on shares of Bank of America in a report on Thursday. Twenty equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $63.61.

Bank of America Stock Performance

Shares of NYSE BAC opened at $51.40 on Thursday. The firm has a 50 day moving average of $59.51 and a 200 day moving average of $56.69. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 1.23. The firm has a market capitalization of $359.45 billion, a price-to-earnings ratio of 11.79, a price-to-earnings-growth ratio of 0.87 and a beta of 1.21. Bank of America has a 12-month low of $46.12 and a 12-month high of $65.22.

Bank of America (NYSE:BAC - Get Free Report) last announced its earnings results on Wednesday, October 14th. The financial services provider reported $1.08 EPS for the quarter, missing analysts' consensus estimates of $1.10 by ($0.02). Bank of America had a net margin of 17.56% and a return on equity of 12.20%. The business had revenue of $29.96 billion for the quarter, compared to analysts' expectations of $30.58 billion. During the same period in the prior year, the company posted $1.06 earnings per share. The firm's quarterly revenue was up 3.2% on a year-over-year basis. On average, research analysts anticipate that Bank of America will post 4.60 earnings per share for the current year.

Hedge Funds Weigh In On Bank of America

A number of hedge funds have recently modified their holdings of BAC. Legal & General Group Plc bought a new position in shares of Bank of America in the second quarter worth about $2,571,060,000. Deutsche Bank AG purchased a new stake in shares of Bank of America during the second quarter worth about $2,359,172,000. Bank of New York Mellon Corp bought a new stake in Bank of America during the 2nd quarter valued at approximately $2,313,953,000. Amundi raised its stake in Bank of America by 12.5% during the 1st quarter. Amundi now owns 42,385,115 shares of the financial services provider's stock valued at $2,066,274,000 after purchasing an additional 4,721,969 shares during the period. Finally, Dimensional Fund Advisors LP raised its stake in Bank of America by 1.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 31,135,112 shares of the financial services provider's stock valued at $1,517,599,000 after purchasing an additional 561,413 shares during the period. 70.71% of the stock is currently owned by institutional investors.

Bank of America News Roundup

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Underlying banking trends were solid: net interest income rose 8% year over year to $16.4 billion, average loans increased 6% to $1.23 trillion, and deposits grew 2% to $2.02 trillion. Global wealth and investment management revenue also increased 13%. Bank of America Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Bank of America returned $8.3 billion to shareholders during the quarter through $2.2 billion of dividends and $6.0 billion of share repurchases, which may support the stock’s valuation after the selloff. Bank of America Reports $6.9 Billion Third-Quarter Net Income
• Neutral Sentiment: CEO Brian Moynihan said the company has accountability for the compliance failures and expects remediation costs to decline over time. BAC also hired roughly 1,000 contractors to address software vulnerabilities identified by Anthropic’s Mythos AI model, adding to near-term expenses but potentially reducing operational risk. Bank of America hired 1,000 contractors to patch software flaws
• Negative Sentiment: U.S. regulators imposed more than $1.2 billion in penalties over anti-money-laundering and sanctions-control failures, including a failure to timely report more than $5 billion in suspicious transactions. The non-tax-deductible charge reduced quarterly earnings by approximately $0.17 per share and raises concerns about ongoing compliance costs. Bank of America profit hurt by $1.2 billion fine
• Negative Sentiment: Adjusted EPS was $1.08 versus the $1.10 consensus, while revenue of roughly $30.0 billion missed estimates near $30.6 billion. Reported net income fell 17% year over year to $6.9 billion, and weaker investment-banking and trading revenue, higher expenses, and a $1.3 billion provision for credit losses compounded the disappointment. BAC Q3 Earnings Miss
• Negative Sentiment: Several law firms announced shareholder investigations following the regulatory disclosures, creating an additional headline and potential litigation risk, although no claims have been established. Securities Fraud Investigation Into Bank of America

About Bank of America

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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