-- 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 $3 to $62, applying a narrower equity risk premium and a forward P/E of 13.6x compared to the three-year historical average on normalized earnings at 13.5x. We are taking a more conservative view on U.S. economic growth that broadly impacts BAC's consumer and commercial banking businesses. Our $62 target price equates to a price-to-book value ($38.66) of 1.6x and price-to-tangible book value ($28.84) of 2.2x, near the average for global U.S. banks. We raise our 2026 EPS estimate by $0.05 to $4.55 and keep 2027's at $5.00. We are mindful that BAC shares are sensitive to public policy and geopolitical risks, and we see BAC as a more defensive investment given its scale across many businesses where it is one of the market leaders. BAC demonstrates strong operational execution with improving efficiency ratios, robust capital generation, and disciplined credit risk management, though faces moderate headwinds from interest rate sensitivity and regulatory compliance requirements.