11 Analysts Assess Bank of America: What You Need To Know

Providing a diverse range of perspectives from bullish to bearish, 11 analysts have published ratings on Bank of America BAC in the last three months.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

In the assessment of 12-month price targets, analysts unveil insights for Bank of America, presenting an average target of $52.82, a high estimate of $58.00, and a low estimate of $49.00. Witnessing a positive shift, the current average has risen by 0.72% from the previous average price target of $52.44.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Bank of America. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Bank of America. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Bank of America compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Bank of America's stock. This analysis reveals shifts in analysts' expectations over time.

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.

Delving into Bank of America's Background

Bank of America is one of the largest financial institutions in the United States, with more than $3.2 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: Delving into Financials

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Bank of America's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 15.43%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Bank of America's net margin is impressive, surpassing industry averages. With a net margin of 25.25%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Bank of America's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.35%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Bank of America's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.19%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Bank of America's debt-to-equity ratio is below the industry average. With a ratio of 1.2, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.