Bank of America (NYSE:BAC) Stock Price Target Lowered at Citigroup

Key Points

• Citigroup lowered Bank of America’s price target from $66 to $60 while maintaining a “buy” rating, implying roughly 15.9% upside from the stock’s current price.
• Analyst sentiment remains broadly positive: 20 analysts rate BAC a Buy and six rate it a Hold, producing a “Moderate Buy” consensus and an average target of $62.52.
• Bank of America’s latest quarter fell slightly short of expectations, with EPS of $1.08 and revenue of $29.96 billion, while regulatory penalties, weaker trading activity and higher expenses remain key risks.

Bank of America (NYSE:BAC) had its price target decreased by Citigroup from $66.00 to $60.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The firm presently has a "buy" rating on the financial services provider's stock. Citigroup's price target indicates a potential upside of 15.93% from the company's current price.

A number of other equities research analysts have also recently commented on the stock. Evercore set a $62.00 price target on shares of Bank of America in a report on Thursday, October 1st. Rothschild & Co Redburn set a $72.00 price objective on Bank of America in a report on Tuesday, October 6th. Wells Fargo & Company reduced their price objective on Bank of America from $69.00 to $64.00 and set an "overweight" rating for the company in a report on Thursday. UBS Group decreased their target price on Bank of America from $70.00 to $67.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Finally, Argus set a $70.00 target price on Bank of America in a research note on Wednesday, July 15th. Twenty investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $62.52.

Bank of America Stock Performance

NYSE BAC traded up $0.37 during trading hours on Thursday, reaching $51.76. 28,399,741 shares of the company were exchanged, compared to its average volume of 37,551,824. Bank of America has a 1 year low of $46.12 and a 1 year high of $65.22. The business's 50 day simple moving average is $59.51 and its 200-day simple moving average is $56.69. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23. The stock has a market capitalization of $361.92 billion, a P/E ratio of 11.88, a P/E/G ratio of 0.87 and a beta of 1.21.

Bank of America (NYSE:BAC - Get Free Report) last released its earnings results on Wednesday, October 14th. The financial services provider reported $1.08 earnings per share 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 company had revenue of $29.96 billion during the quarter, compared to analysts' expectations of $30.58 billion. During the same quarter in the previous year, the firm earned $1.06 earnings per share. The firm's revenue was up 3.2% compared to the same quarter last year. On average, equities research analysts expect that Bank of America will post 4.60 earnings per share for the current year.

Institutional Trading of Bank of America

A number of institutional investors have recently modified their holdings of the business. Total Clarity Wealth Management Inc. increased its position in shares of Bank of America by 3.6% during the 2nd quarter. Total Clarity Wealth Management Inc. now owns 4,889 shares of the financial services provider's stock valued at $279,000 after purchasing an additional 168 shares during the last quarter. Orca Wealth Management LLC raised its holdings in Bank of America by 0.5% during the 2nd quarter. Orca Wealth Management LLC now owns 35,087 shares of the financial services provider's stock valued at $1,999,000 after buying an additional 179 shares during the period. Financial Consulate Inc. lifted its position in Bank of America by 4.0% in the second quarter. Financial Consulate Inc. now owns 4,741 shares of the financial services provider's stock worth $270,000 after buying an additional 181 shares during the last quarter. Bedel Financial Consulting Inc. lifted its position in Bank of America by 1.1% in the second quarter. Bedel Financial Consulting Inc. now owns 16,456 shares of the financial services provider's stock worth $938,000 after buying an additional 184 shares during the last quarter. Finally, GatePass Capital LLC lifted its position in Bank of America by 3.6% in the first quarter. GatePass Capital LLC now owns 5,451 shares of the financial services provider's stock worth $266,000 after buying an additional 190 shares during the last quarter. 70.71% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Bank of America

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

• Positive Sentiment: Analyst support remains a partial tailwind. Robert W. Baird upgraded BAC to “outperform” with a $62 price target, while Keefe, Bruyette & Woods maintained an “outperform” rating with a $65 target. Several other analysts still see upside from current levels. Analyst ratings and price targets
• Positive Sentiment: Management highlighted stronger underlying banking trends, including 8% year-over-year net interest income growth, expanding loans and deposits, and a goal of at least 8% NII growth in 2027. Consumer banking and wealth management also helped offset weakness in trading and investment banking. Q3 earnings call highlights
• Positive Sentiment: BAC’s valuation and shareholder returns may attract long-term investors following the selloff. The bank returned $8.3 billion to shareholders through dividends and repurchases, while its relatively low earnings multiple could support a recovery if costs and compliance issues improve.
• Neutral Sentiment: Truist, TD Cowen and Morgan Stanley lowered their price targets, but their revised targets remain above the current share price. Ratings ranged from “hold” to “outperform,” signaling continued optimism about the franchise but greater near-term caution.
• Negative Sentiment: The main overhang is a more than $1.2 billion non-tax-deductible penalty tied to anti-money-laundering and sanctions-control failures. Regulators said Bank of America failed to report more than $5 billion in suspicious transactions. The charge reduced quarterly earnings by roughly $0.17 per share and raises concerns about additional remediation costs and management oversight. Reuters report on Bank of America penalty
• Negative Sentiment: Third-quarter adjusted EPS of $1.08 and revenue of approximately $30.0 billion missed analyst expectations. Weaker fixed-income trading, investment-banking activity, higher credit-loss provisions and rising expenses pressured results, while unrealized bond losses reportedly climbed to $109 billion as long-term yields increased. BAC Q3 earnings analysis
• Negative Sentiment: Bank of America is also hiring about 1,000 contractors to address software weaknesses exposed by advanced AI testing, adding to compliance and technology expenses. Several law firms have announced shareholder investigations, creating an additional reputational and potential legal risk.

Bank of America Company Profile

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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