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On April 7, shares of Bank of America Corporation (BAC) surged more than 3%, catching the attention of analysts who saw a potential buying opportunity after a sharp decline earlier in the year. The stock had fallen nearly 20% year to date, positioning it as one of the worst-performing money center banks in 2025.
Morgan Stanley’s Betsy Graseck upgraded the bank to “Overweight” from “Equal-Weight” despite lowering her price target. She acknowledged concerns about how Federal Reserve rate cuts and yield curve changes could impact Bank of America’s net interest margin.
Nevertheless, Graseck has found value in the stock, which is currently priced at about 8 times her 2026 earnings projections, with an anticipated return on equity of 11% in the coming year.
For investors with an appetite for buying the dip, the moment may be ripe.
About Bank of America Stock
Nestled in Charlotte, North Carolina, Bank of America has a sprawling footprint that spans consumer and commercial banking, capital markets, investment banking, and wealth management.
Yet even giants face headwinds. Over the past year, BAC stock is up by just 3%, falling behind The Financial Select Sector SPDR Fund’s (XLF) 18.3% gain, painting a picture of underperformance in a sector striving to regain its footing.
Bank of America Surpasses Q4 Earnings
On Jan. 16, the banking powerhouse pulled back the curtain on its 2024 fourth-quarter earnings, leaving Wall Street pleasantly surprised. Its revenue climbed 15% year over year to $25.3 billion, nudging just past the Wall Street forecast of $25.1 billion. The uptick came from robust asset management, surging investment banking fees, and a solid sales and trading revenue leap.
Consumer Banking brought in $10.6 billion in revenue, marking a 3.1% annual gain. Here, net income clocked in at $2.8 billion, bolstered by card-related income and rising net interest earnings. The Global Wealth and Investment Management arm matched the broader pace with a 14.8% revenue boost, driven by swelling asset management fees. The segment posted net income of $1.2 billion.
Global Banking echoed the upward rhythm, with revenue up 2.7% and net income landing at $2.1 billion. Meanwhile, Global Markets performed outstandingly, with a 13.9% surge in sales and trading revenue, totaling $4.1 billion. Net income in the segment climbed to $941 million.
Bank of America’s provisions for credit losses rose to $1.5 billion from last year's $1.1 billion, reflecting caution in light of economic headwinds. Still, capital management held firm, as $5.5 billion was returned to shareholders, including $3.5 billion through share repurchases.
Total net income grew 116.1% from the year-ago value to $6.7 billion. Meanwhile, EPS soared 134.3% to $0.82, beating expectations of $0.77. With total assets at $3.3 trillion and $290.1 billion in cash on Dec. 31, 2024, the bank remains on firm footing.
What Do Analysts Expect for Bank of America Stock?
The mood around BAC is far from gloomy, even as a few price targets take a haircut. Truist Financial Corporation nudged its target price down from $53 to $50 but kept its “Buy” flag flying high. Morgan Stanley’s Betsy Graseck followed suit, lowering the price target to $47 from $56, yet she turned the dial up to “Buy.”
It’s a case of short-term caution meeting long-term conviction. The broader analyst consensus paints a bullish picture with a consensus rating of “Strong Buy.” Out of 23 covering the stock, 17 advocate a “Strong Buy,” five lean toward a “Moderate Buy,” and only one sits on the fence with a “Hold.”
The average price target of $50.93 represents potential upside of 41%, while the Street-high target of $58 suggests that the stock can climb as much as 61% from the current price level. Despite the trimmed projections, the consensus underscores a strong belief in the stock’s long-term value, suggesting that the tide may well be in its favor.
