HSBC Begins Coverage on Bank of America (NYSE:BAC)

by · The Markets Daily

Stock analysts at HSBC assumed coverage on shares of Bank of America (NYSE:BAC) in a report released on Monday, Marketbeat.com reports. The firm set a “buy” rating and a $65.00 price target on the financial services provider’s stock. HSBC’s price objective would indicate a potential upside of 18.26% from the company’s current price.

Other equities research analysts have also recently issued research reports about the company. Morgan Stanley reissued an “overweight” rating on shares of Bank of America in a research note on Tuesday, September 15th. Evercore set a $63.00 price objective on shares of Bank of America and gave the company an “outperform” rating in a research report on Monday, July 6th. Wells Fargo & Company lifted their target price on shares of Bank of America from $67.00 to $69.00 and gave the company an “overweight” rating in a research note on Wednesday, July 15th. Citigroup lifted their target price on shares of Bank of America from $62.00 to $66.00 and gave the company a “buy” rating in a research note on Tuesday, June 23rd. Finally, Truist Financial boosted their target price on shares of Bank of America from $64.00 to $65.00 and gave the stock a “buy” rating in a research report on Wednesday, July 15th. Twenty investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $64.35.

Read Our Latest Report on BAC

Bank of America Price Performance

BAC opened at $54.97 on Monday. The stock has a fifty day moving average price of $61.35 and a 200 day moving average price of $56.20. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 1.23. Bank of America has a 1 year low of $46.12 and a 1 year high of $65.22. The stock has a market cap of $384.36 billion, a price-to-earnings ratio of 12.61, a PEG ratio of 0.89 and a beta of 1.15.

Bank of America (NYSE:BAC – Get Free Report) last issued its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The company had revenue of $31.56 billion for the quarter, compared to analyst estimates of $30.78 billion. During the same period in the prior year, the firm posted $0.89 EPS. The business’s revenue was up 19.6% compared to the same quarter last year. Analysts forecast that Bank of America will post 4.66 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in BAC. Total Clarity Wealth Management Inc. raised its stake in shares of Bank of America by 3.6% in the second quarter. Total Clarity Wealth Management Inc. now owns 4,889 shares of the financial services provider’s stock valued at $279,000 after acquiring an additional 168 shares during the last quarter. Orca Wealth Management LLC grew its position in Bank of America by 0.5% during the 2nd quarter. Orca Wealth Management LLC now owns 35,087 shares of the financial services provider’s stock worth $1,999,000 after acquiring an additional 179 shares during the last quarter. Financial Consulate Inc. grew its position in Bank of America by 4.0% during the 2nd quarter. Financial Consulate Inc. now owns 4,741 shares of the financial services provider’s stock worth $270,000 after acquiring an additional 181 shares during the last quarter. Bedel Financial Consulting Inc. increased its holdings in Bank of America by 1.1% during the 2nd quarter. Bedel Financial Consulting Inc. now owns 16,456 shares of the financial services provider’s stock valued at $938,000 after purchasing an additional 184 shares in the last quarter. Finally, GatePass Capital LLC increased its holdings in Bank of America by 3.6% during the 1st quarter. GatePass Capital LLC now owns 5,451 shares of the financial services provider’s stock valued at $266,000 after purchasing an additional 190 shares in the last quarter. 70.71% of the stock is owned by institutional investors.

Key Stories Impacting Bank of America

Here are the key news stories impacting Bank of America this week:

  • Positive Sentiment: Analyst support remains firm. HSBC initiated coverage with a Buy rating and a $65 price target, while Morgan Stanley also maintained a Buy recommendation. These targets imply meaningful upside from recent levels and reinforce the bullish consensus. Bank of America Stock Rated Buy in New Coverage at HSBC
  • Positive Sentiment: Real-time payments are gaining corporate traction. Bank of America said corporate RTP transaction volume increased 48%, while transactions above $1 million rose 351%. Greater use for liquidity management, intercompany transfers and time-sensitive payments could support fee growth and strengthen the bank’s payments franchise. BofA Clients Accelerate RTP Use
  • Positive Sentiment: AI investments may improve treasury-service competitiveness. New CashPro Payments Insights and AskGPS Intelligence Hub tools provide payment analytics, benchmarking and client insights. The offerings could increase customer engagement and support growth in high-value treasury services. Bank of America Launches Payments Insights for CashPro Clients
  • Positive Sentiment: Earnings expectations are constructive. Analysts anticipate a double-digit year-over-year increase in third-quarter earnings, supported by stronger revenue, investment-banking momentum and digital growth. Higher interest rates could also benefit banks such as BAC through lending and asset yields. Bank of America Earnings Preview
  • Neutral Sentiment: Bank of America announced plans to hire 1,000 apprentices and commit $150 million to workforce development over five years. The initiative supports its long-term talent strategy but could add expenses before producing measurable financial benefits.
  • Negative Sentiment: Rising operating costs could limit near-term earnings leverage, even as revenue and investment-banking activity improve. Investors may also be weighing broader bond-market volatility and uncertainty over how sustained higher rates will affect credit demand and funding costs.

Bank of America Company Profile

(Get Free Report)

Bank of America Corporation (NYSE:BAC) is a diversified financial services company serving individual consumers, small businesses, middle-market companies and large corporations. Its principal businesses include consumer banking, wealth and investment management, commercial banking, corporate and investment banking, and sales and trading.

Through its banking and financial services businesses, the company offers deposit accounts, credit cards, mortgages, home equity products, consumer and business loans, payment services, treasury management, brokerage services and investment advice.

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