Bank of America (BAC) Target Cut at Morgan Stanley on Earnings Revisions

Bank of America Corporation (NYSE:BAC) is included among the 15 Best Blue-Chip Stocks with Growing Dividends.

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On December 12, Morgan Stanley reduced its price target on Bank of America Corporation (NYSE:BAC) to $68 from $70. The firm maintained an Overweight rating. The firm also adjusted its earnings expectations, cutting its fourth-quarter EPS estimate by 4% and lowering its 2027 forecast by 2.5%. The revisions reflect softer investment banking fees and higher expenses, partly offset by stronger expectations for equities trading revenue.

The same day brought a notable milestone for the bank. According to The Wall Street Journal, Bank of America Corporation (NYSE:BAC)’s shares closed at $55.14 on Friday, marking the stock’s first record high since before the 2008 financial crisis. For a bank that was deeply affected by that period, the move carried symbolic weight.

In the years following the crisis, Bank of America faced a long recovery. The bank closed hundreds of underperforming branches and reduced its workforce by tens of thousands. At the same time, it preserved and expanded Merrill Lynch’s Wall Street operations, remaining active in capital markets and wealth management. Its consumer and commercial banking footprint continued to grow nationwide, with deposits now totaling $1.96 trillion, second only to JPMorgan Chase.

Momentum has continued into the current period. Last month, at its first investor day in more than a decade, CEO Brian Moynihan outlined updated financial targets. The bank is aiming for returns on tangible common equity of 16% to 18% over the next three to five years. Management believes closer coordination across its business lines, from consumer banking to wealth management and investment banking, can support that goal.

Bank of America Corporation (NYSE:BAC) is a global financial institution with a broad platform spanning banking, investing, wealth management, and lending, serving both individual and institutional clients worldwide.

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Disclosure: None.