Bank of America

Most of the analysts providing recommendations on Bank of America (BAC) recommended a “buy.” Bank of America will likely post higher net interest income in 2019 due to growth in loans and deposits. The company’s operating leverage and share repurchases are expected to drive its EPS in 2019.

Among the 31 analysts tracking Bank of America, 18 recommended a “buy,” while 13 recommended a “hold.” Analysts have a consensus target price of $33.33, which implies a potential upside of 11.5% based on its closing price of $29.88 on April 16.

Bank of America: Analysts’ Recommendations and Target Price

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Besides Bank of America, analysts also recommended a “buy” on Citigroup (C) stock. Most of the analysts recommended a “hold” on JPMorgan Chase (JPM), Goldman Sachs (GS), and Wells Fargo (WFC) shares.

Valuation summary

Bank of America stock trades at a forward PE ratio of 10.1x, which is ~14% lower than its historical average multiple of 11.7x. The bank’s low valuation and expected growth of 9% and 10% in its EPS in 2019 and 2020, respectively, will likely to support its stock in the near term.

In comparison, Citigroup, Goldman Sachs, and Wells Fargo stock are trading at a lower valuation multiple. Citigroup, Goldman Sachs, and Wells Fargo shares are trading at a forward PE ratio of 8.7x, 8.2x, and 10.x, respectively. JPMorgan Chase stock trades at a forward PE ratio of 11.0x.

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