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Bank of America on the Street: What the Analyst Ratings Suggest

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Analyst ratings

As of May 2017, 23 of the 31 analysts (~74%) covering Bank of America (BAC) have given it “buy” or “strong buy” ratings, while seven analysts have rated the company as a “hold.” Only one analyst has rated the company as a “sell.” BAC’s mean price target is $26.05 per share, implying a 10.7% rise over its current price.

Since March 2017, the bank’s overall ratings have deteriorated marginally, with its “strong buy” or “buy” ratings falling from 26 to 23 analysts. It has seen a rise in “hold” and “sell” ratings by one analyst for each.

Analyst ratings

Competitors’ ratings

Among BAC’s major competitors, J.P. Morgan (JPM) has 16 of its 29 analysts rating it as a “buy” or “strong buy,” while 12 analysts have rated it as a “hold,” and one has rated it as a “sell.”

For Citigroup (C), 18 of the 29 analysts covering the stock have given it “buy” or “strong buy” ratings. Eight analysts have given it a “hold,” while three analysts have given it “underperform” or “sell” ratings.

For Wells Fargo (WFC), 13 of the 31 analysts covering the stock have given it “buy” or “strong buy” ratings, while 12 analysts have given WFC “hold” ratings, and five analysts have given it “underperform” or “sell” ratings.

Together, Bank of America’s peers account for 29.5% of the Financial Select Sector SPDR ETF (XLF).

In the next and final part of this series, we’ll discuss the valuations of BAC and its peers.

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