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Research Alert: CFRA Lowers Shares Of Bank Of America Corporation To Hold From Buy

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target price by $5 to $55, applying a narrower equity risk premium and a forward P/E of 12.1x compared to the three-year historical average at 12.3x. We keep our EPS estimates at $4.55 in 2026 and $5.00 in 2027, near consensus estimates on revenue projections of $1203B and $125B, respectively. We think core areas of business may witness a slowdown in 2026 due to the Iran-U.S. war's impact on inflation and cost of living. There are also tail risks that could negatively impact BAC's growth, such as consumer spending and loan balances, commercial loans, and commercial real estate refinancings. After further review of Q1 2026 results, we see that outsize performance from Global Markets (trading services) offset modest Q/Q gains in Consumer Banking and Global Banking. We believe the Fed may dig in their heels with a rate-neutral regime and a higher rate bias until there is greater clarity from the outcome of the Iran-U.S. war. BAC shares are down 9.5% year-to-date and trade with a 2.25% dividend yield.

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