These Analysts Boost Their Forecasts On Bank of America Following Better-Than-Expected Earnings

Author: Avi Kapoor | July 17, 2024 01:22pm

Bank of America Corp (NYSE:BAC) reported better-than-expected second-quarter results on Tuesday.

The company posted second-quarter fiscal 2024 net income of $6.9 billion and EPS of 83 cents, beating the analyst consensus estimate of 80 cents, according to data from Benzinga Pro.

Revenue, net of interest expense, increased 0.8% year-over-year to $25.54 billion, beating the analyst consensus estimate of $25.22 billion.

The net interest income was $13.7 billion (-3.0% Y/Y), as higher deposit costs more than offset higher asset yields and modest loan growth. Noninterest income was $11.7 billion (+6.0% Y/Y). Provision for credit losses was $1.5 billion, compared to $1.1 billion a year ago.

CFO Alastair Borthwick said, “We announced plans for an eight percent increase in our quarterly common stock dividend, to 26 cents per share, pending Board approval.”

Bank of America said it sees net interest income of ~$14.50 billion in the fourth quarter. It assumes a 25 bps interest rate cut.

Bank of America shares fell 0.4% to trade at $43.96 on Wednesday.

These analysts made changes to their price targets on Bank of America after the company released quarterly results.

• RBC Capital analyst Gerard Cassidy maintained Bank of America with an Outperform rating and raised the price target from $39 to $46.
• Keefe, Bruyette & Woods analyst David Konrad reiterated the stock with an Outperform rating, while increasing the price target from $46 to $48.
• Evercore ISI Group analyst Glenn Schorr maintained Bank of America with an Outperform rating, while raising the price target from $43 to $46.
• Barclays analyst Jason Goldberg maintained the stock with an Overweight rating and boosted the price target from $43 to $49.
• Morgan Stanley analyst Betsy Graseck maintained Bank of America with an Overweight rating and raised the price target from $44 to $46.

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Posted In: BAC