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Wall Street JournalEvaluating Bank of America: Insights From 8 Financial Analysts
In the preceding three months, 8 analysts have released ratings for Bank of America (NYSE:BAC), presenting a wide array of perspectives from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 7 | 0 | 0 | 0 |
| Last 30D | 0 | 3 | 0 | 0 | 0 |
| 1M Ago | 0 | 3 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
Analysts have recently evaluated Bank of America and provided 12-month price targets. The average target is $48.0, accompanied by a high estimate of $50.00 and a low estimate of $45.00. This current average reflects an increase of 0.9% from the previous average price target of $47.57.
Decoding Analyst Ratings: A Detailed Look
An in-depth analysis of recent analyst actions unveils how financial experts perceive Bank of America. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| David Konrad | Keefe, Bruyette & Woods | Raises | Outperform | $50.00 | $48.00 |
| Chris Kotowski | Oppenheimer | Raises | Outperform | $50.00 | $49.00 |
| Betsy Graseck | Morgan Stanley | Raises | Overweight | $48.00 | $47.00 |
| Gerard Cassidy | RBC Capital | Maintains | Outperform | $46.00 | $46.00 |
| Chris Kotowski | Oppenheimer | Raises | Outperform | $49.00 | $48.00 |
| Betsy Graseck | Morgan Stanley | Lowers | Overweight | $47.00 | $49.00 |
| Matt O'Connor | Deutsche Bank | Announces | Buy | $45.00 | - |
| Betsy Graseck | Morgan Stanley | Raises | Overweight | $49.00 | $46.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Bank of America. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Bank of America compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Bank of America's stock. This examination reveals shifts in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Bank of America's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Bank of America analyst ratings.
Unveiling the Story Behind Bank of America
Bank of America is one of the largest financial institutions in the United States, with more than $3.0 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, retail lending products, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does its private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries but is primarily US-focused.
Financial Milestones: Bank of America's Journey
Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Revenue Growth: Over the 3 months period, Bank of America showcased positive performance, achieving a revenue growth rate of 0.71% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Bank of America's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 25.94%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Bank of America's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.47%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Bank of America's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.2%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Bank of America's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.24.
Analyst Ratings: Simplified
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.