Analysts rate Bank of America Corp.(BAC:NYE) with a Buy rating, Target $50

STA Research
by: STA Research
Bank of America Corporation stock

Analysts rate Bank of America with a consensus Buy rating and a 12-month average Target price of $50.29 per share.

Robert W. Baird upgraded Bank of America from Underperform to Neutral, and maintained the $42 target on the company’s stock.

Based on the Bank of America Corporation stock forecasts from 16 analysts, the average analyst target price for Bank of America Corporation is USD 50.29 over the next 12 months. Bank of America Corporation’s average analyst rating is . Stock Target Advisor’s own stock analysis of Bank of America Corporation is Bearish, which is based on 2 positive signals and 10 negative signals. At the last closing, Bank of America Corporation’s stock price was USD 38.34. Bank of America Corporation’s stock price has changed by -5.86% over the past week, -10.17% over the past month and +3.26% over the last year.

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. The company was incorporated in 1998 and is based in Charlotte, North Carolina. Address: Bank of America Corporate Center, Charlotte, NC, United States, 28255

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

 

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cash flow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.

 

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