Bank of America’s Mixed Quarter: A Shift in Expectations
The latest quarterly results from Bank of America (BAC) have sparked a mixed reaction from analysts, with Evercore ISI revising its price target downward to $51 from $53, while maintaining an Outperform rating. Despite a strong 2025 outlook, characterized by steady revenue growth, the bank’s less-than-stellar expense management has raised concerns.
A Decent Quarter, but Expenses Weigh
Bank of America’s fourth-quarter performance was decent, but the accompanying expense growth has taken some shine off its otherwise strong showing. This disparity has led to a slight decline in shares, contrasting with the upward trend seen among its peers. According to Evercore ISI, this unexpected expense pressure has prompted a reassessment of the bank’s prospects.
Revised Earnings Projections
In light of these developments, Evercore ISI has adjusted its earnings per share (EPS) estimates for 2025 and 2026. The firm now expects EPS to reach $3.60 in 2025, down from its previous forecast of $3.81, and $4.52 in 2026, a decrease from the initial $4.78 projection. This revised outlook reflects the increased expense pressure that Bank of America is likely to face in the coming years.
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Related News and Analysis
Bank of America has been the subject of various analyst reports and price target revisions in recent weeks. Oppenheimer, Truist, and Morgan Stanley have all raised their price targets, while Piper Sandler has taken a more cautious approach, lowering its target to $49 from $50. As the banking sector continues to evolve, investors will be closely watching Bank of America’s performance and adjusting their strategies accordingly.
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