Bank of America is primed to get a lift from a number of tailwinds, in keeping with Citi. Analyst Keith Horowitz upgraded shares to purchase from impartial. He additionally lifted his goal value for the inventory to $54 from $46, which suggests upside of 21% from Thursday’s shut. BAC YTD mountain BAC YTD chart Horowitz famous pointed to a sexy valuation for Bank of America relative to friends akin to JPMorgan Chase. “The valuation spread between BAC and JPM remains very outsized adjusted for returns, and assuming JPM is setting the table for where implied CoE for the group can go, we see very attractive risk/reward in BAC,” he wrote. Less regulation beneath a brand new Trump administration might additionally bolster Bank of America shares. “On regulation, BAC is a low-risk firm and could benefit from lighter regulatory environment, and we expect room to run with a proposal re-write on B3 potentially driving returns above our 15% normalized assumption,” the analyst added. Shares are up greater than 32% yr thus far. They additionally rose 1% within the premarket following the improve. Analysts are typically bullish on the inventory. Of the 24 who cowl Bank of America, 17 have a purchase or robust purchase ranking, LSEG information reveals.
