In the latest quarter, 11 analysts provided ratings for Bank of America BAC, showcasing a mix of bullish and bearish perspectives.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 5 | 5 | 1 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 2 | 2 | 1 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 3 | 2 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $40.99, a high estimate of $50.00, and a low estimate of $33.00. This upward trend is apparent, with the current average reflecting a 1.71% increase from the previous average price target of $40.30.
Deciphering Analyst Ratings: An In-Depth Analysis
A comprehensive examination of how financial experts perceive Bank of America is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Erika Najarian | UBS | Raises | Neutral | $40.00 | $39.00 |
| Whit Mayo | Wells Fargo | Raises | Overweight | $44.00 | $40.00 |
| Saul Martinez | HSBC | Raises | Hold | $39.00 | $38.00 |
| Keith Horowitz | Citigroup | Raises | Neutral | $39.00 | $37.00 |
| Chris Kotowski | Oppenheimer | Lowers | Outperform | $46.00 | $50.00 |
| Scott Siefers | Piper Sandler | Raises | Underweight | $33.00 | $31.00 |
| Chris Kotowski | Oppenheimer | Raises | Outperform | $50.00 | $49.00 |
| Betsy Graseck | Morgan Stanley | Raises | Overweight | $41.00 | $32.00 |
| Dick Bove | Odeon Capital | Announces | Hold | $33.90 | - |
| Chris Kotowski | Oppenheimer | Lowers | Outperform | $49.00 | $50.00 |
| James Fotheringham | BMO Capital | Lowers | Market Perform | $36.00 | $37.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Bank of America. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Bank of America compared to the broader market.
- Price Targets: Understanding forecasts, analysts offer estimates for Bank of America's future value. Examining the current and prior targets provides insight into analysts' changing expectations.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Bank of America's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Bank of America analyst ratings.
Discovering Bank of America: A Closer Look
Bank of America is one of the largest financial institutions in the United States, with more than $3.0 trillion in assets. It is organized into four major segments: consumer banking, global wealth and investment management, global banking, and global markets. Bank of America's consumer-facing lines of business include its network of branches and deposit-gathering operations, retail lending products, credit and debit cards, and small-business services. The company's Merrill Lynch operations provide brokerage and wealth-management services, as does its private bank. Wholesale lines of business include investment banking, corporate and commercial real estate lending, and capital markets operations. Bank of America has operations in several countries but is primarily US-focused.
Bank of America's Financial Performance
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Challenges: Bank of America's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -10.49%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: Bank of America's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 12.92%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Bank of America's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.09%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Bank of America's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.09%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.27.
The Significance of Analyst Ratings Explained
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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