Bank of America is scheduled to announce its results for the first quarter of 2025 on Tuesday, April 15. BAC stock has declined 18.4% so far this year due to fears of a potential recession sparked by tariff wars. Banks were expected to gain from lower corporate taxes and M&A (mergers and acquisitions) deregulation under the Trump administration. However, tariff wars are expected to slow down the global economy, hurting the banking sector. Meanwhile, analysts expect Bank of America to report Q1 2025 earnings per share (EPS) of $0.82, reflecting an 8% year-over-year growth.
BAC’s revenue is expected to increase by more than 4% to $26.97 billion in Q1 2025. This growth rate marks a slowdown compared to the 15% rise in Q4 2024 revenue, thanks to increased fees from investment banking and asset management and stronger trading results.
Investors will look forward to management’s commentary about the extent to which the tariff wars and macro headwinds are expected to impact M&A deals, trading activity, investment banking business, loan portfolio, and credit quality in the quarters ahead.
Analysts’ Views Ahead of BAC’s Q1 Results
Recently, JPMorgan analyst Vivek Tuneja lowered the price target for Bank of America stock to $43.50 from $49.50 and reiterated a Buy rating. Tuneja expects tariff wars to increase concerns about the impact on the economy and put pressure on the overall markets.
The 4-star analyst expects the ongoing challenges to impact investment banking, consumer spending, loan growth, and the wealth management business of banks. He cautioned that there is a possibility of further reductions in his estimates depending on the full impact of tariffs.
Ahead of the Q1 results, Morgan Stanley analyst Betsy Graseck upgraded Bank of America stock from Hold to Buy but lowered the price target to $47 from $56. The analyst upgraded BAC stock due to attractive valuation levels following the recent pullback. The 4-star analyst is bullish on BAC stock, as the stock is trading at 8x his 2026 EPS estimate and 0.8x BVPS (book value per share) estimate while offering a 2026 ROE (return on equity) of 11%.
Options Traders Anticipate Major Move on BAC’s Q1 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 9.2% move in either direction in Bank of America stock in reaction to Q1 results.
Is BAC Stock a Buy, Sell, or Hold?
Overall, Bank of America stock scores a Strong Buy consensus rating based on 15 Buys and three Holds. The average BAC stock price target of $50.97 implies 42% upside potential.
