BAC Stock Today: January 30 Targets Cut, Buy Ratings Reaffirmed
Bank of America stock (BAC) eased to $51.81 today, down 2.39%, after several brokers trimmed BAC price target ranges while keeping Buy/Outperform calls. The shift reflects softer operating leverage guidance and slower buyback expectations, with revenue and net interest income (NII) outlooks mostly intact. The shares trade between a 52‑week low of $33.07 and high of $57.55. We think near‑term drivers include NII trajectory, provision trends, and the pace of capital returns, alongside the April 15, 2026 earnings date.
Wall Street trims targets, stays positive
Several firms modestly cut BAC price target assumptions after a Q4 2025 EPS beat, citing softer operating leverage guidance and slower buybacks, while reiterating Buy/Outperform. Revenue and NII views were largely unchanged, signaling confidence in core earnings power despite expense discipline taking longer. That backdrop keeps the focus on 2026 margin mix and loan growth quality. See coverage recap here source.
The reset narrows upside in the short run, but “buy rating maintained” signals support on dips. Shares sit at $51.81, with a 50‑day average near $53.91 and a 200‑day near $49.01, suggesting a $50–$55 chop until fresh catalysts. Watch the Fed’s path, yield‑curve steepness, and April 15 earnings for updated guidance on expenses, NII, and capital returns.
What the quarter said
Q4 2025 delivered an EPS beat, helped by steady fee lines and disciplined funding costs. Management pointed to a stable near‑term NII trajectory and moderate loan growth, though expense savings will take time to show through. The update reset expectations around operating leverage guidance, not the revenue base, keeping 2026 performance tied to deposit betas, card spend, and commercial pipelines.
Provisioning remains the swing factor. Consumer delinquencies and charge‑offs are normalizing, so investors should track reserve builds against unemployment and card credit. Capital levels support dividends, with a roughly 2.04% yield and about a 31% payout ratio. Repurchase activity looks paced, not paused, and will depend on earnings, stress‑test outcomes, and macro clarity.
Key drivers to watch next
Monitor deposit migration, deposit beta stabilization, and earning‑asset mix for NII. Loan pricing is competitive, so spreads matter. Expense programs should curb inflation in technology and operations, but the current operating leverage guidance implies limited margin expansion near term. Any improvement in card loss curves or fee momentum could offset slower cost progress.
BAC price target changes reflect a more gradual buyback runway. Still, dividend support looks firm with a ~31% payout ratio. On valuation, TTM P/E near 12.7 and P/B around 1.28 compare with a book value per share near $41.17 and EPS about $3.81. Upside levers: higher buyback velocity, fee strength, and stronger operating leverage.
Valuation and technical setup
At $51.81, shares trade below the 50‑day ($53.91) but above the 200‑day ($49.01). YTD is -4.88% while 1‑year is +13.91%. Street stance: 19 Buys, 5 Holds, no Sells (consensus Buy). Meyka’s stock grade is B+ (Buy), while a fundamentals screen skews B‑ with valuation caution. For multi‑year scenarios and price paths, see this outlook source.
Momentum is constructive but warm: RSI 69.07, MACD positive (0.83 vs 0.74), Stochastic %K at 84.56, and CCI 161. ADX 19.38 suggests no strong trend. ATR at 0.90 points to moderate daily swing risk, while MFI at 53.4 sits neutral. Short‑term pullbacks can happen if overbought signals persist into earnings.
Final Thoughts
Bank of America stock is digesting trimmed targets, but the core message is steady: Buy/Outperform stances remain as revenue and NII outlooks hold. The near‑term playbook is simple. First, track NII versus deposit costs and loan yields. Second, watch provisions for any shift in consumer credit. Third, gauge capital returns as buybacks ramp alongside earnings and stress‑test clarity. Valuation sits reasonable on P/E and P/B, while momentum is warm ahead of April 15, 2026 earnings. For active investors, plan entries near the 200‑day and reassess on guidance updates. For long‑term holders, dividends plus paced repurchases still support compounding.
FAQs
Why were BAC price targets cut if ratings stayed Buy?
Brokers trimmed targets due to softer operating leverage guidance and a slower buyback path, which modestly lowers near‑term earnings power. However, they maintained Buy or Outperform because revenue and NII outlooks were largely intact, credit remains manageable, and valuation is reasonable. The core earnings engine appears resilient despite expense timing.
What are the key metrics to watch next for BAC?
Focus on net interest income versus deposit costs, provision trends in consumer credit, and the pace of capital returns. Also watch fee momentum across wealth and markets, expense run‑rate progress, and loan growth quality. The April 15, 2026 earnings report should update guidance and frame the path for buybacks and dividends.
How is BAC valued today versus its fundamentals?
Shares trade around a 12.7x TTM P/E and roughly 1.28x P/B, with a dividend yield near 2.04% and a payout ratio near 31%. Book value per share is about $41.17 and TTM EPS is about $3.81. That mix suggests reasonable pricing if NII holds and credit stays stable.
Is Bank of America stock a buy after the target cuts?
Analysts kept Buy/Outperform ratings, signaling confidence in core earnings. Near term, upside may hinge on NII stability, expense control, and buyback pace. Technically, momentum is warm, which can invite pullbacks. Long‑term buyers may prefer staged entries around support and reassess after the April earnings update.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
