Bank of America (BAC) Shares Soar 1.91% on Morgan Stanley Price Target Hike

Bank of America (BAC) shares surged 1.91% intraday, reaching their highest level since March 2025, marking a third consecutive day of gains and a 4.65% increase over the past three days.

The strategy of buying BAC shares after they reached a recent high and holding for one week yielded a 33.55% return, underperforming the benchmark by 24.43%. With a Sharpe ratio of 0.46 and a maximum drawdown of -30.44%, the strategy faced significant volatility and risk, highlighting the challenges of such a short-term, high-volatility approach.

Morgan Stanley recently revised its target price for Bank of America, raising it from $47.00 to $49.00 while maintaining an "overweight" rating. This adjustment suggests a positive outlook for the stock, with an approximate 5.8% upside potential. The increase in target price reflects the strong momentum in Bank of America's stock, which has surged 7.96% over the last month. This upward trend indicates sustained buying pressure and positive market sentiment towards the company.