Keefe Bruyette upgraded Bank of America to Outperform from Market Perform with a price target of $46, up from $37. Bank of America offers “strong: capital, deposits and credit, but the main driver of the upgrade is an expected inflection in the bank’s Q4 net interest income 5% above Q2, driven by back book repricing and improved commercial and industrial yields, the analyst tells investors in a research note. Moreover, the firm expects 4% NII growth in 2025 despite expectations of four interest rate cuts. Keefe believe Bank of America’s “closing the gap” to its 15% return on tangible common equity target and that consensus estimates have room to rise, which will drive share outperformance.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on BAC:
- Bank of America Declares Third-Quarter 2024 Preferred Stock Dividends
- Investors Comfortable with Larger Cash Positions as FOMO Fades
- Europe set to delay Basil bank trading rules by a year, Bloomberg reports
- Unusually active option classes on open June 11th
- ICBC: China’s Banking Leader on the Global Stage
