Update shared on17 Sep 2025
Fair value Increased 0.31%Analysts have raised Bank of America's price target slightly, citing structural advantages, resilient consumer trends, and improved capital markets outlook, though concerns over rising expenses and valuation temper further upside; as a result, the consensus price target increased modestly from $53.52 to $53.69.
Analyst Commentary
- Bullish analysts highlight long-term structural advantages due to Bank of America's scale, leading to sustainable, predictable returns and superior profitability compared to peers.
- Multiple upward price target revisions were based on higher expected capital markets and investment banking revenues, as well as resilient card volume trends indicating healthy consumer spending.
- Recent outperformance of large bank stocks is attributed to macroeconomic optimism, potential regulatory tailwinds (including lowered capital requirements), and relatively healthy operating fundamentals.
- Bearish analysts cite concerns over rising expense forecasts for future periods and stretched share valuations following a significant rally, which may limit further upside despite positive fundamentals.
- Downgrades and caution reflect mounting short momentum, lack of further positive consensus estimate revisions relative to peers, and a preference among analysts for super-regional banks over universal banking models.
What's in the News
- Bank of America is among major U.S. financial firms investing over $1.69B in the U.K., set to create 1,800 jobs, ahead of President Trump's visit (Reuters, 2025-09-14).
- Bank of America and other large banks are warning U.S. lawmakers about a regulatory loophole in stablecoin legislation that could allow crypto exchanges to pay indirect interest to stablecoin holders, putting banks at a competitive disadvantage (FT, 2025-08-25).
- President Trump met with Bank of America's CEO and other banking chiefs to discuss privatization plans for Fannie Mae and Freddie Mac (Reuters, 2025-08-07).
- The White House is drafting an executive order to fine banks, including Bank of America, that drop customers for political reasons, potentially increasing regulatory risk (WSJ, 2025-08-05).
- Large U.S. banks such as Bank of America are expected to clear the Federal Reserve's annual stress tests, which may allow for higher dividends and share buybacks due to strong capital positions (Reuters, 2025-06-25).
Valuation Changes
Summary of Valuation Changes for Bank of America
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $53.52 to $53.69.
- The Future P/E for Bank of America remained effectively unchanged, moving only marginally from 13.77x to 13.80x.
- The Net Profit Margin for Bank of America remained effectively unchanged, moving only marginally from 26.93% to 26.97%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.