Analysts are bullish on Bank of America
Wall Street analysts have been bullish on shares of Bank of America (BAC) on prospects of an interest rate hike and cheap valuations. In a Bloomberg survey of 38 analysts on July 19, 30 analysts have assigned a “buy” rating to BAC while nine have rated it a “hold.” Currently, the stock doesn’t have any sell ratings. BAC has a consensus target price of $17.1, which implies a one-year upside potential of 20%.
Analyst views on 2Q16 earnings
A Nomura (NMR) analyst said, “BAC’s 2Q results, while noisy, reflected a number of items that surprised positively (better fee income and efficiency, with core NII and credit costs in line). And although 2Q rebasing of rate expectations / curve flattening could dampen positive revisions for 2H16 / 2017E, with shares trading at ~82% of TBV, Nomura believes this is already reflected in the stock, and would expect shares to outperform off the back of these results.”
Credit Suisse (CS) Group AG analysts maintained their rating for the stock after second quarter earnings. They highlighted that “all in, solid results consistent with our thesis on BAC. Progress continues. This franchise can grow, markets willing. That, coupled with expense management efforts and manageable credit cost increases will be the keys to the realization of franchise potential.”