Bank of America (BAC) has received a new Buy rating, initiated by Evercore ISI analyst, Glenn Schorr.
Glenn Schorr issued a Buy rating for Bank of America due to several key factors. The bank’s solid quarterly performance, although featuring decelerating growth, included an indication of a bottoming out for net interest income and slight expense growth, both of which contributed to a 2% rise in shares. Despite some concerns over credit quality and possible regulatory capital increases, Schorr acknowledges the company’s established history in organic growth and cost management, which underpins his confidence in the bank’s continued success.
Bank of America’s net interest income guidance suggests a potential 4-5% increase on consensus figures, which is also considered positively by Schorr. The bank’s balance sheet, being sensitive to assets, is anticipated to benefit in a high-for-longer scenario. Additionally, Bank of America’s ongoing headcount reduction initiatives are expected to keep expenses in check in 2024, allowing the bank to maintain its competitive edge. Moreover, the bank’s successful digital adoption across its consumer, Merrill, Private Bank, and Global Banking segments is predicted to further amplify these cost efficiencies. Therefore, all these factors contributed to Schorr’s Buy rating for the Bank of America’s stock.
According to TipRanks, Schorr is a 4-star analyst with an average return of 5.0% and a 59.04% success rate. Schorr covers the Financial sector, focusing on stocks such as Bank of America, Bank of New York Mellon Corporation, and Blackrock.
In another report released yesterday, Goldman Sachs also assigned a Buy rating to the stock with a $31.00 price target.
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Bank of America (BAC) Company Description:
Bank of America Corp. provides banking and nonbank financial services. It operates through the following segments: Consumer Banking, Global Wealth and Investment Management, Global Banking, Global Markets, and All Other. The company was founded by Amadeo Peter Giannini in 1904 is headquartered in Charlotte, NC.
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