In a report released yesterday, Keith Horowitz from Citi maintained a Hold rating on Bank of America (BAC – Research Report), with a price target of $31.00.
Keith Horowitz has issued a Hold rating for Bank of America due to a mixture of factors that have influenced his perspective on the stock’s status. The Bank’s third-quarter results were solid, and there was a positive response from the stock market with a 2.3% increase. However, there was a lot of debate regarding the Bank’s Net Interest Income (NII) accounting definitions, which have divided opinions among investors and analysts.
Despite a consolidated NII beat and strong results in global markets and banking, Horowitz believes that the relevant metric is NII excluding Global Markets, which fell short of his estimates and offset the strong results elsewhere. Even though he views the sector as oversold at the moment, he still sees better risk/reward opportunities elsewhere due to potential downside to 2024 consensus. This, coupled with limited NII upside and a relatively premium valuation, has led him to maintain a Neutral rating for the Bank.
According to TipRanks, Horowitz is a 4-star analyst with an average return of 5.5% and a 56.63% success rate. Horowitz covers the Financial sector, focusing on stocks such as Goldman Sachs Group, Wells Fargo, and Bank of America.
In another report released on October 10, Jefferies also maintained a Hold rating on the stock with a $28.00 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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