Bank of America upgraded to Buy from Neutral at UBS as stock ‘overlooked’

UBS upgraded Bank of America (BAC) to Buy from Neutral with a price target of $53, up from $43. UBS thinks Bank of America has largely been overlooked, and that the Street has not yet recalibrated BofA’s EPS power from higher rates for longer in the post-election landscape of de-regulation, the analyst tells investors in a research note. The firm says BofA is an overlooked beneficiary of Basel 3 endgame “softening,” as not only would the bank benefit from a less onerous final capital rule, but it has the strongest inclination among the money centers to buy back stock today. UBS thinks BofA could buy back $18B of stock in 2025.