Bank of America Corporation Stock Price Targets

Comprehensive analysis of short, mid, and long-term price targets for Bank of America Corporation (BAC).

Back to Analysis Hub

Give me a comprehensive price target analysis for Bank of America Corporation (BAC).

Below is a comprehensive BAC analysis with the requested price-target drawing (already executed) and a full, data-driven investment narrative.

Note on the drawn price-target lines

  • Low Target: 46.00, color green, extended from 2025-10-10 to 2025-11-09
  • Median Target: 56.25, color blue, extended from 2025-10-10 to 2025-11-09
  • High Target: 66.00, color red, extended from 2025-10-10 to 2025-11-09

Executive Summary

  • Investment thesis: Bank of America (BAC) remains a high-quality, large-cap financials franchise with robust capital, strong balance sheet liquidity, and a proven ability to generate earnings across cycles. The stock trades at a discount to many peers on an earnings basis, supported by a solid dividend yield and meaningful buyback activity. The current price sits near the 50-day moving average, and forward earnings multiple is modest, offering upside as interest-rate normalization and loan growth scenarios improve net interest income (NII) and operating leverage.

  • Outlook: Moderate-to-bullish longer-term potential, contingent on stable macro conditions, continued NII expansion, cost discipline, and ongoing capital management. Short-to-mid term catalysts include improving NII, margin stabilization, and potential multiple-complimentary catalysts (buybacks, capital optimization). The price targets imply meaningful upside from the current level, with the roadmaps anchored by the Low/Median/High targets drawn on the chart.

Fundamental Analysis Key Valuation and Health Metrics (as of today)

  • Current price: 49.79
  • Market cap: $368.79B
  • Enterprise value: $373.79B
  • Trailing P/E: 14.60
  • Forward P/E: 13.60
  • Price to book: 1.34
  • Return on equity (ROE): 9.46%
  • Return on assets (ROA): 0.84%
  • Profit margins: 28.51%
  • Gross margins: not meaningfully reported for banks (not directly comparable); operating margins: 30.91%
  • Debt-to-equity: not provided
  • Total cash: $838.14B
  • Total debt: $819.27B
  • Dividend yield: 2.25%
  • Five-year average dividend yield: 2.37%
  • Beta: 1.334
  • Note: BAC remains highly liquid with substantial cash relative to debt; its leverage and funding profile remain manageable within a regulated framework.

Analyst Price Targets (consensus snapshot)

  • Current price: 49.79
  • Number of analysts: 24
  • Target Low / Median / High: 46.00 / 56.25 / 66.00
  • Target mean: 56.15 (approx.)
  • Implied upside vs. current price:
    • To Low: ~ -7.6%
    • To Median: ~ +13.0%
    • To High: ~ +32.6%

Earnings Analysis Recent Earnings Summary (selected highlights)

  • 2025-06-30: Net income from continuing operations + net income (as reported) around $7.12B; Diluted EPS: $0.89
  • 2025-03-31: Net income from continuing operations + net income around $7.40B; Diluted EPS: $0.90
  • 2024-12-31: Net income around $6.665B; Diluted EPS: $0.82
  • 2024-09-30: Net income around $6.896B; Diluted EPS: $0.81
  • 2024-06-30: Net income around $6.896B; Diluted EPS: $0.83
  • 2025-06-30 gross vs. normalized metrics show Normalized Income of roughly $7.12B, with a consistent quarterly EPS in the $0.89–$0.95 range.

EPS Trends (trajectories and growth)

  • 0q (most recent quarter): Diluted EPS 0.9416; Basic EPS 0.900
  • +1q (next quarter out): Diluted EPS 0.9574; Basic EPS 0.929
  • 0y (trailing 12 months): Diluted EPS 3.6858
  • +1y (forward 12 months): Diluted EPS 4.2664 Interpretation:
  • The forward-looking EPS implied by the +1y figure (~4.27) suggests BAC is targeting accretive earnings growth consistent with a steady NII path and expense discipline. The quarterly trend shows modest quarter-to-quarter improvement in the near term and a multi-quarter expansion in the annualized view.

EPS Revisions

  • 0q: Up revisions totaling +4 (upLast7days) and +8 (upLast30days); Down revisions: 1 (downLast30days); 0 (downLast7days)
  • +1q: +2 / +4 / -2 / 0
  • 0y: +2 / +6 / -2 / 0
  • +1y: +2 / +8 / -3 / 0 Net takeaway: Broadly positive EPS revisions across near- and medium-term horizons, signaling analyst optimism on BAC’s earnings trajectory going forward.

Technical Analysis (Last 60 days)

  • 50-Day Moving Average (latest): ~49.4
  • Price action vs. 50-day MA: The stock price (~49.79) is slightly above the latest 50-day MA, suggesting a mild near-term bullish tilt in the context of the recent consolidation.
  • RSI (14): Latest reading around 20.9 (deeply oversold by a historical measure; the RSI has oscillated in the 20–80 range across the period, with notable spikes to the 70s–80s in late Aug 2025).
  • MACD (12,26,9): Latest MACD ~0.1 with Signal ~0.5 (bearish crossover indicated recently; momentum has shifted modestly negative, but not decisively).
  • Interpretation: The combination of price above the 50-day MA but a current MACD signal leaning bearish and an oversold RSI suggests a potential near-term rebound if NII remains supported and macro conditions stabilize. The price targets drawn on the chart provide a visual beltway of potential resistance/support zones.

Moving Average, RSI, and MACD Implications

  • The price hovering around the 50-day MA supports a baseline for a tactical bounce if the macro environment improves or if BAC reports favorable NII dynamics.
  • RSI near 21 indicates oversold conditions, which historically can precede a near-term relief rally, particularly if there are positive earnings surprises or favorable guidance.
  • MACD near-term weakness implies that any rally would need to be supported by improving underlying fundamentals or stronger net interest income, not just a technical rebound.

Analyst Consensus & Price Targets

  • Coverage: 24 analysts
  • Current price: 49.79
  • Targets: Low 46.00, Median 56.25, High 66.00
  • Upside potential (to targets): Median ~+13%, High ~+33%
  • Catalysts: Net interest income momentum as rates stabilize, cost control, capital deployment (buybacks) and ongoing resilience in loan growth and consumer wallet segments, improved margins, and regulatory/compliance efficiency.
  • Risks: Macro slowdown, credit quality headwinds in a recession scenario, competitive pressure, and regulatory changes that could affect NII and fee-based revenue.

Price Target Analysis (Short, Mid, Long-Term)

  • Short-Term (3 months): 56.25 (Median Target)
    • Justification: Near-term earnings stability, continued resilience in NII as rates normalize, and ongoing cost control. Positive revisions and earnings momentum support a path toward the median target within a quarter or two.
    • Key drivers: NII stabilization, expense discipline, favorable loan mix, continued buyback activity (capital returns), and steady credit quality.
    • Risks: Short-term volatility in rates or macro data; a weaker-than-expected macro backdrop could cap upside.
    • Implied return from current price (49.79 to 56.25): ~+13%
  • Mid-Term (12 months): 66.00 (High Target)
    • Justification: If BAC sustains earnings growth, expands net interest income, and experiences multiple expansion in a constructive macro environment, the high target becomes achievable as financial conditions stabilize and investor confidence grows.
    • Key drivers: Higher net interest margins in a rising-rate environment, continuous expense control, favorable loan growth, and ongoing capital deployment (buybacks and capital management) that supports a higher multiple.
    • Risks: Slower-than-anticipated loan growth, adverse credit trends in a downturn, or a tighter regulatory regime that compresses net income or restricts capital returns.
    • Implied return from current price to 66: ~+33%
  • Long-Term (3+ years): 75.00 (reasonable long-horizon target; illustrative)
    • Justification: Based on a normalized earnings trajectory and a stabilized or modestly expanded P/E multiple, BAC could reach a long-run target in the mid-60s to mid-70s range as EPS compounds and the valuation multiple modestly expands with improved confidence in the business model.
    • Assumptions: Forward EPS around $4.2–$4.7 in the near term with 3–4% annualized earnings growth, and a forward P/E in the 14–16x band over the longer horizon. This yields a rough target in the mid-70s given the base-case EPS trajectory and multiple.
    • Risks: A more persistent macro downturn, sustained margin compression, or regulatory changes that cap earnings growth or capital returns.
    • Implied return from current price to 75: ~+50% (depending on the exact growth path and multiple normalization)
  • Methodology note: The long-term target uses a mix of forward earnings potential and a stabilized or modestly expanded multiple, anchored by BAC’s defensible franchise value, strong balance sheet, and resilient dividend story. The 75 target is a reasonable extension from this framework, recognizing potential upside in a favorable macro and rate environment.

Key Risks & Opportunities

  • Key Risks

    • Macro risk: economic slowdown or recession could weigh on loan growth and credit quality.
    • Rate sensitivity: NII remains a primary earnings driver; prolonged low-rate periods or higher rate volatility could impact net interest margins.
    • Regulation: evolving capital rules, compliance costs, or changes in fee structures could impact profitability.
    • Competition: fintechs and non-bank lenders could erode some fee-based revenue streams.

  • Key Opportunities

    • Capital deployment: ongoing buybacks and a favorable dividend policy support earnings per share and shareholder value.
    • NII recovery: stabilization or expansion of net interest margins as rates normalize could drive earnings.
    • Cost discipline: efficiency initiatives and technology-driven operating leverage could improve margins.
    • Balance sheet strength: robust liquidity and capital levels support resilience and strategic flexibility.

Investment Recommendation

  • Recommendation: Hold to Accumulate
    • Time frame: 12–24 months
    • Rationale: BAC trades with a favorable dividend yield (~2.25%), solid capital base, and a modest forward P/E (~13.6x). The stock has a path to meaningful upside through a confluence of NII expansion, cost control, and continued capital return, as shown by the consensus target range (46–66) and the favorable long-term framework described above.
    • Expected return potential:
      • Base-case near-term (3–12 months): roughly 10–15% (+ to the median target)
      • Mid-term (12–24 months): potentially up to 25–35% (+ to the high target under favorable conditions)
      • Long-term potential: ~50%+ if earnings grow steadily and multiple expansion occurs
    • Important caveats: ABM (any broad macro misstep) remains a key risk; BAC’s ability to translate earnings stability into higher stock price depends on macro stability, NII dynamics, and incremental buybacks.

Comprehensive Data Tables (selected)

  • Quick Snapshot | Metric | Value | |---|---| | Current price | 49.79 | | Market cap | $368.79B | | Enterprise value | $373.79B | | Trailing P/E | 14.60x | | Forward P/E | 13.60x | | Price to book | 1.34x | | ROE | 9.46% | | ROA | 0.84% | | Profit margin | 28.51% | | Operating margin | 30.91% | | Total cash | $838.14B | | Total debt | $819.27B | | Dividend yield | 2.25% | | 5-year avg dividend yield | 2.37% | | Beta | 1.334 |

  • Analyst Targets | Stat | Value | |---|---| | Current price | 49.79 | | Analysts | 24 | | Target Low | 46.00 | | Target Median | 56.25 | | Target High | 66.00 | | Target Mean | 56.15 |

  • Earnings Summary (selected) | Date | Net income (continuing ops) | Diluted EPS | Notes | |---|---|---|---| | 2025-06-30 | 7.12B | 0.89 | Normalized Income ~7.12B | | 2025-03-31 | 7.40B | 0.90 | | | 2024-12-31 | 6.67B | 0.82 | | | 2024-09-30 | 6.90B | 0.81 | | | 2024-06-30 | 6.90B | 0.83 | |

  • EPS Trend (selected) | Period | Diluted EPS | |---|---| | 0q (latest) | 0.9416 | | +1q | 0.9574 | | 0y | 3.6858 | | +1y | 4.2664 |

  • EPS Revisions (selected) | Period | UpLast7d | UpLast30d | DownLast30d | DownLast7d | |---|---:|---:|---:|---:| | 0q | 4 | 8 | 1 | 0 | | +1q | 2 | 4 | 2 | 0 | | 0y | 2 | 6 | 2 | 0 | | +1y | 2 | 8 | 3 | 0 |

  • Technical Indicators (latest notable values) | Indicator | Latest Value | |---|---| | 50-day MA | ~49.4 | | RSI (14) | 20.9 (latest) | | MACD (12,26,9) | MACD 0.1; Signal 0.5 |

Conclusion

  • BAC displays a balanced risk/reward profile: a robust financial franchise, strong liquidity and capital, a healthy dividend, and a favorable earnings path implied by forward estimates. The current price sits near the 50-day MA, with oversold-style RSI readings suggesting potential near-term relief rallies if macro and rate environments cooperate. The drawn price-target lines (46.00, 56.25, 66.00) provide a clear framework for upside and risk boundaries aligned with consensus targets.

If you’d like, I can also include a sensitivity analysis showing how changes in P/E multiples and forward EPS assumptions affect the long-term valuation, or provide a one-page executive summary for a presentation deck.

Chart is loading...