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Why Analysts Recommend ‘Buy’ for Bank of America Stock

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Oct. 20 2017, Updated 9:36 a.m. ET

Ratings for bankers

Due to its strong diversified performance and balance sheet strengthening, Bank of America (BAC) has seen a steep rise in its stock price, and continues to hold the most “buy” ratings among commercial bankers (XLF). Trading activity has been strong for the bank due to a focus on technology and related services. This month, 22 analysts have given Bank of America “strong buy” or “buy” ratings, seven have recommended “hold,” and just one analyst has recommended “sell.”

Bank of America’s mean price target is $27.50 per share. This target implies a 6.5% rise from its current price, reflecting stable growth in the upcoming quarters.

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Industry-wide health

Citigroup (C) has received 16 “buy” or “strong buy” ratings, reflecting its improved performance in core and investment banking. Of the 28 analysts covering the stock, 11 have recommended “hold, ” and one has recommended “sell.” The bank has a one-year price target of $75.59, compared with its current price of $72.11.

For JPMorgan Chase (JPM), 14 of 28 analysts have recommended “buy” or “strong buy,” 12 have recommended “hold,” and two have rated it as “underperform” or “sell,” reflecting a stable uptick due to its high current valuation. Wells Fargo (WFC) has the weakest ratings, with 12 analysts of 30 recommending “buy” or “strong buy,” 14 recommending “hold,” and four rating it “underperform.”

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