Bank of America Maintains Buy Rating with Raised Price Target of $50 by Morgan Stanley Analyst Betsy Graseck.

Morgan Stanley analyst Betsy Graseck has maintained her Buy rating for Bank of America with a raised price target of $50. She expects higher fee income from investment services, trading, and service charges, as well as reduced share count and modest expense declines. The bank's average loan growth of 3% QoQ and 7% YoY supports the positive outlook.

Morgan Stanley analyst Betsy Graseck has maintained her Buy rating for Bank of America (BAC), raising the price target to $50.00 [1]. Graseck's positive outlook is based on several factors, including expectations of higher fee income from investment services, trading, and service charges, as well as a reduced share count and modest expense declines. Additionally, the bank's average loan growth of 3% quarter-over-quarter (QoQ) and 7% year-over-year (YoY) supports the positive outlook [1].

Graseck's 2026 earnings per share estimate was increased by 2% to $4.53, reflecting higher fee income and reduced share count. The price target of $50.00 was set using an 11x 2026 target price-to-earnings ratio, consistent with previous multiples [1].

Goldman Sachs also maintained a Buy rating on Bank of America with a $56.00 price target, reflecting strong performance in the second quarter [2]. The bank's Q2 earnings were impressive, driven by market swings and a strong bump in net interest income [2].

In the second quarter, Bank of America reported a record quarter with revenue from fixed-income, currency, and commodities (FICC) trading rising 19% to $3.25 billion and equity trading adding another $2.13 billion, a 9.6% increase year-over-year. Net interest income climbed 7.1% to $14.7 billion, exceeding expectations [2].

Overall, the positive outlook for Bank of America is supported by strong performance in trading and fee income, as well as robust loan growth. The bank's ability to capitalize on market conditions and adapt to changing market conditions has been a key factor in its success.

References:
[1] https://www.tipranks.com/news/ratings/positive-outlook-and-increased-price-target-for-bank-of-america-betsy-grasecks-buy-recommendation-ratings
[2] https://www.ainvest.com/news/goldman-sachs-morgan-stanley-bank-america-beat-q2-earnings-expectations-driven-trading-surge-2507/