Average Analyst Target-$39.06
Consensus Analyst Rating-Buy
Bank of America Stock Forecast:
According to the forecasts of 15 analysts, the average target price for Bank of America’s stock over the next 12 months is $39.06. The analysts have given the stock an average rating of “Buy.” However, Stock Target Advisor’s own analysis of the company’s stock is bearish, meaning that it expects the stock to perform worse than the market as a whole. This analysis is based on 3 positive signals and 9 negative signals. The Bank of America’s stock price at the last closing was $34.07, and it has increased by 2.81% over the past week, but decreased by 1.16% over the past month and 27.79% over the past year. It is important to note that these forecasts and ratings are just one factor to consider when making investment decisions, and it may be helpful to also consult other sources and conduct thorough research before making any investment decisions.
Analyst Coverage Change:
According to the information provided, JP Morgan & Company has lowered its target price for Bank of America to $38.5, while Deutsche Bank Capital has downgraded the stock from “Hold” to “Sell” and lowered its target price from $45 to $36 on various concerns. One of those is Bank of America’s high level of exposure to interest rate risk, which is the risk that changes in interest rates will adversely impact its financial performance. This risk is particularly relevant for banks, which rely on the spread between their borrowing and lending rates to generate profits.
Positive Fundamentals
- High market capitalization: The company is one of the largest in its sector and is among the top quartile in terms of size. Companies with high market capitalization tend to be more stable.
- Superior risk-adjusted returns: The stock has performed well on a risk-adjusted basis (returns adjusted for risk) compared to its sector peers over the past 12 months and is in the top quartile.
- High dividend returns: The stock has outperformed its sector peers in terms of average annual dividend returns (the amount of dividends paid per share as a percentage of the stock price) over the past 5 years and is in the top quartile. This may be a good buy for investors seeking high income yields, especially if the stock is also outperforming in terms of total return (the change in the stock price plus any dividends).
Negative Fundamentals:
- High volatility: The total returns for the company’s stock (the change in the stock price plus any dividends) have been volatile and above median for its sector over the past 5 years. This means that the stock may be more risky to invest in.
- Below median total returns: The company has underperformed its peers in terms of annual average total returns (the change in the stock price plus any dividends) over the past 5 years.
- Overpriced compared to earnings: The stock is trading at a high price compared to its peers on a price-to-earnings basis, which is a measure of the price of a stock relative to its earnings per share. It is also trading above the median for its sector on this basis.
- Overpriced compared to book value: The stock is also trading at a high price compared to its peers on a price-to-book value basis, which is a measure of the price of a stock relative to its book value (the company’s assets minus its liabilities). It is trading above the median for its sector on this basis.
- Poor return on equity: The company’s management has delivered a below median return on equity (a measure of the company’s profitability) in the most recent four quarters compared to its peers.
- Negative cash flow: The company had negative total cash flow (cash generated by the company’s operations) in the most recent four quarters.
- Low Earnings Growth: The company’s stock has shown below median earnings growth (an increase in profits) in the previous 5 years compared to its sector.
- Low Revenue Growth: The company’s stock has also shown below median revenue growth (an increase in sales) in the previous 5 years compared to its sector.
- Low Dividend Growth: The company’s stock has also shown below median dividend growth (an increase in dividends paid per share) in the previous 5 years compared to its sector.
About of Bank of America:
Bank of America is a multinational investment bank and financial services company based in Charlotte, North Carolina. It is one of the largest banks in the United States by assets and is a global leader in wealth management, corporate and investment banking, and trading and market-making. Bank of America offers a wide range of products and services, including checking and savings accounts, credit cards, mortgages, and personal and auto loans, as well as investment options such as mutual funds, ETFs, and IRAs. The company also provides services to corporations, governments, and institutions, including underwriting, M&A advisory, and project and structured finance. Bank of America has a strong presence in the US and globally, with operations in over 35 countries and a network of more than 4,700 branches and 16,000 ATMs.
