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.
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
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.