Betsy Graseck, an analyst from Morgan Stanley, maintained the Buy rating on Bank of America (BAC – Research Report). The associated price target remains the same with $47.00.
Betsy Graseck’s rating is based on Bank of America’s strong financial performance and growth prospects. The bank exceeded earnings expectations by 10% due to increased fee income and asset growth, with a notable 9% year-over-year increase in commercial and industrial loans. This robust loan growth, along with the bank’s reaffirmed net interest income guidance for the fourth quarter of 2025, contributed to the stock’s outperformance.
Betsy Graseck also adjusted the earnings per share estimates for 2025 and 2026 upwards, reflecting higher loan growth and fee income, although these were partially offset by increased expenses and provisions. The price target remains unchanged at $47, based on an 11x price-to-earnings ratio applied to the 2026 EPS. Additionally, the bank’s net interest margin is expected to improve, supported by factors such as BSBY accretion and strategic reinvestments, which further strengthens the investment thesis.
According to TipRanks, Graseck is a 4-star analyst with an average return of 2.7% and a 46.47% success rate. Graseck covers the Financial sector, focusing on stocks such as Wells Fargo, Bank of America, and State Street.
In another report released today, KBW also maintained a Buy rating on the stock with a $52.00 price target.