Bank of America Corporation Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Bank of America Corporation (BAC).
Give me a comprehensive price target analysis for Bank of America Corporation (BAC).
Horizontal trendlines drawn
- Low Target 46.00 (green) extended 30 days forward
- Median Target 56.00 (blue) extended 30 days forward
- High Target 66.00 (red) extended 30 days forward
(These lines were drawn on BAC with the dates set to 2025-10-07 and extended to 2025-11-06.)
Executive Summary
- Investment thesis: BAC trades at a reasonable multiple for a large, well-diversified US bank with solid capital generation, robust cash generation, and a strong dividend yield. The stock offers a potential upside to the analyst-distributed price targets, driven by earnings growth, cost discipline, and returns to shareholders, while exposed to sensitivity to the macro environment (rate path, credit metrics, and regulatory developments).
- Near-term view: Modest upside embedded in consensus targets, supported by improving earnings momentum and positive EPS revisions in the latest data, with risk skew to macro shocks or tighter credit conditions.
- Key takeaway: With a current price around 50.39 and a mean analyst target near 55.85, BAC presents a favorable risk-reward, particularly if earnings stabilization and capital return plans sustain momentum.
Fundamental Analysis
- Core valuation and financial health
- Current price: 50.39
- Market cap: $373.24B
- Enterprise value: $379.71B
- Trailing P/E: 14.78
- Forward P/E: 13.77
- Price-to-Book: 1.36
- ROE: 9.46%
- ROA: 0.84%
- Operating margin: 30.9%
- Net profit margin: 28.5%
- Total cash: $838.14B
- Total debt: $819.27B
- Dividend yield: 2.21%
- Five-year avg dividend yield: 2.37%
- Beta: 1.334
- Observations
- The bank shows robust profitability metrics (operating margin around 31%, net margins ~28.5%), with a strong liquidity position and a modest net debt posture (cash roughly aligns with debt; net cash is small). The forward P/E below the trailing P/E suggests modest growth expectations priced in.
- Return metrics are healthy for the sector, but not outsized. The stock is relatively well-insulated against risk by its diversified revenue base and strong capital generation, though sensitive to interest rate and credit cycles.
Earnings Analysis Recent Earnings Summary (selected quarters)
- Quarter ending 2025-06-30
- Net income (continuing ops, net income): $7.12B
- Diluted EPS: $0.89
- Total revenue: $26.46B
- Quarter ending 2025-03-31
- Net income (continuing ops, net income): $7.40B
- Diluted EPS: $0.90
- Total revenue: $27.37B
- Quarter ending 2024-12-31
- Net income (continuing ops, net income): $6.67B
- Diluted EPS: $0.82
- Total revenue: $25.35B
- Quarter ending 2024-09-30
- Net income (continuing ops, net income): $6.90B
- Diluted EPS: $0.81
- Total revenue: $25.34B
- Quarter ending 2024-06-30
- Net income (continuing ops, net income): $6.90B
- Diluted EPS: $0.83
- Total revenue: $25.38B
- Observations
- Quarterly earnings have trended modestly higher in Q2 2025 vs. prior quarters, with diluted EPS in the 0.89–0.90 range in the latest reported quarters.
- Revenue levels have been relatively stable around the mid-$25B range per quarter, with some variability quarter-to-quarter.
- EPS Trends
- Current quarter (0q): 0.9362
- 7 days ago: 0.9289
- 30 days ago: 0.9247
- 60 days ago: 0.9235
- 90 days ago: 0.9212
- +1q (next-year look): current 0.9577; 7d ago 0.9524; 30d ago 0.9513; 60d ago 0.9501; 90d ago 0.9302
- 0y (TTM): 3.6813; 7d ago 3.6717; 30d ago 3.6667; 60d ago 3.6656; 90d ago 3.6160
- +1y (forward 12m): 4.2676; 7d ago 4.2611; 30d ago 4.2603; 60d ago 4.2598; 90d ago 4.2221
- EPS Revisions
- 0q: upLast7d = 4; upLast30d = 8; downLast30d = 1; downLast7d = 0
- +1q: upLast7d = 2; upLast30d = 4; downLast30d = 2; downLast7d = 0
- 0y: upLast7d = 2; upLast30d = 6; downLast30d = 2; downLast7d = 0
- +1y: upLast7d = 2; upLast30d = 8; downLast30d = 3; downLast7d = 0
- Observations
- Positive earnings revisions modestly outpace negative revisions across periods, signaling some favorable sentiment regarding sustained EPS momentum over time.
Technical Analysis Current price action and indicators
- 50-day moving average (latest): 49.2
- Latest close: 50.4
- Price relative to 50-day MA: About 1.2 above, indicating near-term bullish price positioning relative to the intermediate trend.
- RSI (14) snapshot: 47.4 (latest)
- Implication: RSI recently cooled from overbought levels in late Aug/early Sep, currently below 50, suggesting some short-term momentum weakness but not extreme overselling.
- MACD (12,26,9): MACD 0.4; Signal 0.7 (latest)
- Implication: Positive MACD but the MACD line remains below the signal line, indicating a softer near-term momentum with possible consolidation risk near support levels.
Analyst Consensus & Price Targets
- Current price: 50.39
- Target Low: 46.00
- Target Median: 56.00
- Target High: 66.00
- Number of Analysts: 24
- Target Mean: 55.85
- Interpretation: The consensus suggests a modest to meaningful upside from current levels, with a distribution that supports at least a 9% to 31% upside depending on the scenario. The mean target is approximately 56 in the next 12 months, with a high-case scenario near 66.
- Catalysts: Ongoing economic recovery tailwinds, consistent loan growth and margin stability, disciplined expense management, and capital return (dividends and buybacks) could support multiple expansion and earnings upside.
Price Target Analysis (Short, Mid, Long-Term)
- Short-Term (3 months): Target 56.00
- Justification: Current price near 50.4, with positive revisions dynamics and a solid near-term earnings trajectory. Catalyst potential includes solid Q3/Q3’25 results, steady loan growth, and continued cost discipline. If momentum holds, the stock could approach the median target around 56 in the next few quarters.
- Key drivers: Stable NIM in a favorable rate environment, ongoing expense control, and continued strong capital returns.
- Risks: Macro shocks, tighter credit conditions, or a reversal in rate expectations could cap near-term upside.
- Mid-Term (12 months): Target 60.00
- Justification: The forward earnings path shows an upshift to roughly $4.27–$4.50 per share (12-month look), with a current P/E in the mid-teens and a P/B around 1.3. If earnings momentum continues and the multiple expands modestly (to roughly 13–14x forward), the stock could settle around the $60s.
- Key drivers: Sustained revenue resilience, margin stability, ongoing capital returns, and potential multiple expansion.
- Risks: A more pronounced macro slowdown, higher loan losses, or regulatory changes could dampen upside.
- Long-Term (3+ years): Target 66.00
- Justification: The high target represents a bull case where BAC grows earnings meaningfully beyond the base, maintains or slightly expands margins, and benefits from a re-rating to higher P/E ranges as ROE stabilizes and capital action remains supportive.
- Key drivers: Resilient top-line growth, efficiency improvements, stable credit quality, and continued strong capital deployment (dividends + buybacks).
- Risks: Structural headwinds in the banking sector (credit cycles, regulatory changes) or a sustained structural earnings headwind could limit upside.
Key Risks & Opportunities
- Major risks
- Macro risk: economic slowdown could pressure loan growth, net interest income, and credit quality.
- Regulatory and regulatory capital requirements could impact risk-weighted assets and returns.
- Competitive pressures in payments, consumer banking, and capital markets could compress margins.
- Key opportunities
- Recession-resilient demand and diversified revenue streams can support earnings stability.
- Capital returns: steady dividend and buyback programs provide upside to total shareholder return.
- Margin management and cost controls can uplift profitability even in a challenged rate environment.
Investment Recommendation
- Recommendation: Hold to Moderate Buy
- Rationale: The stock trades at a reasonable multiple for a large, diversified bank with solid earnings generation and a meaningful dividend yield. The consensus targets imply upside to the 56–60 range over the next 12 months, with a high-case scenario near 66. The latest EPS trends and revisions data show a modest positive tilt, though near-term momentum has cooled (RSI ~47.4, MACD still above zero but with a lagging momentum signal). The risk-reward is favorable if earnings momentum stabilizes and capital returns persist, but investors should remain mindful of macro and credit-cycle risks.
- Expected return potential (12–24 months): Roughly 6–25% upside, contingent on earnings stabilization, multiple expansion, and continued capital returns.
Key Data Tables
- Key Metrics (as of 2025-10-07)
- Analyst Consensus & Targets
- Earnings Summary (Selected Quarters)
- EPS Trend
- EPS Revisions
- Technical Snapshot (Last 60 Days)
- Price Target Analysis (Short, Mid, Long-Term)
- Key Metrics
- Table: BAC snapshot
| Metric | Value |
|---|---|
| Current price | 50.39 |
| Market cap | 373,236,072,448 |
| Enterprise value | 379,711,815,680 |
| Trailing P/E | 14.78 |
| Forward P/E | 13.77 |
| PEG | — (null) |
| Price to Book | 1.36 |
| ROE | 9.46% |
| ROA | 0.84% |
| Profit margin | 28.51% |
| Gross margin | 0.00% |
| Operating margin | 30.91% |
| Total cash | 838,142,984,192 |
| Total debt | 819,272,024,064 |
| Dividend yield | 2.21% |
| Five-year avg dividend yield | 2.37% |
| Beta | 1.334 |
- Analyst Consensus & Targets
- Table: Analyst targets
| Item | Value |
|---|---|
| Current price | 50.39 |
| Target Low | 46.00 |
| Target Median | 56.00 |
| Target High | 66.00 |
| Number of analysts | 24 |
| Target Mean | 55.85 |
- Earnings Summary (Selected Quarters)
- Table: Quarterly earnings
| Quarter | Net income (continuing ops) | Diluted EPS | Revenue |
|---|---|---|---|
| 2025-06-30 | 7,116,000,000 | 0.89 | 26,463,000,000 |
| 2025-03-31 | 7,396,000,000 | 0.90 | 27,366,000,000 |
| 2024-12-31 | 6,665,000,000 | 0.82 | 25,347,000,000 |
| 2024-09-30 | 6,896,000,000 | 0.81 | 25,345,000,000 |
| 2024-06-30 | 6,897,000,000 | 0.83 | 25,378,000,000 |
- EPS Trend
- Table: Key EPS figures
| Series | Current | 7 days ago | 30 days ago | 60 days ago | 90 days ago |
|---|---|---|---|---|---|
| 0q Diluted EPS | 0.93616 | 0.92887 | 0.92470 | 0.92352 | 0.92117 |
| +1q Diluted EPS | 0.95770 | 0.95241 | 0.95125 | 0.95007 | 0.93024 |
| 0y Diluted EPS | 3.68134 | 3.67167 | 3.66665 | 3.66565 | 3.61597 |
| +1y Diluted EPS | 4.26757 | 4.26111 | 4.26026 | 4.25978 | 4.22207 |
- EPS Revisions
- Table: Revision activity (counts)
| Period | Up Last 7d | Up Last 30d | Down Last 30d | Down Last 7d |
|---|---|---|---|---|
| 0q | 4 | 8 | 1 | 0 |
| +1q | 2 | 4 | 2 | 0 |
| 0y | 2 | 6 | 2 | 0 |
| +1y | 2 | 8 | 3 | 0 |
- Technical Snapshot (Last 60 Days)
- 50-day MA: 49.2 (latest)
- Latest close: 50.4
- RSI (14): 47.4 (latest)
- MACD (12,26,9): MACD 0.4; Signal 0.7 (latest)
Notes on Earnings, EPS Trends, and EPS Revisions
- The recent earnings summary shows continued profitability with quarterly diluted EPS in the 0.89–0.90 range for the latest quarters, and a trailing 12-month diluted EPS around the mid-3s (3.68 TTM, per the 0y figure). The forward-looking EPS is implied to be around the mid-to-high 4s in the next year (+1y ~4.27). This aligns with a valuation setup of a large-cap bank trading in the mid-teens P/E range with a solid dividend.
- EPS trend data indicate multiple quarters of steady improvement in the quarterly EPS, with 0q at 0.936 and a +1q look ahead at 0.958, supported by a steady revenue base in the mid-$25B range per quarter.
- EPS revisions show more upward revisions than downward over the 7- and 30-day windows for both the current and next-year periods, signaling growing analyst confidence in continued earnings resilience.
Investment Implications
- The price targets imply upside potential, with the median target at 56 and a high target at 66. The current price of 50.39 sits about 9–31% below the mean/upper targets, indicating a constructive setup if the earnings momentum and macro backdrop cooperate.
- The technical backdrop shows the price trading above the 50-day MA, but with a modestly cooled near-term momentum signal (RSI under 50 and MACD still lagging). This supports a stance of cautious upside in the near term, with potential for acceleration if earnings momentum improves and market sentiment improves.
Bottom Line
- BAC presents a balanced risk/reward profile: solid profitability, a healthy dividend, and improving EPS revisions support upside to the analyst targets. The three drawn horizontal lines mark a framework for price action: 46 (support), 56 (central target), and 66 (bull-case target). Given the current price, fundamentals, and consensus targets, a measured path higher appears plausible, with a preference for a cautious, buy-on-dips approach and a multi-quarter horizon to capture the potential upside.
If you’d like, I can add scenario-specific sensitivity (e.g., how the targets shift if forward P/E expands or contracts by 1–2x, or if EPS in the next year comes in above/below consensus) or generate a one-page executive slide summarizing these points.