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Barclays Hikes BofA (BAC) PT To $71 on Expectations of Sustained Earnings Momentum in 2026

Bank of America Corporation (NYSE:BAC) is one of the most buzzing stocks to invest in according to hedge funds. On January 5, Barclays raised the firm’s price target on Bank of America to $71 from $59 while maintaining an Overweight rating on the shares. As part of its 2026 sector forecast, Barclays updated its ratings and price targets for large-cap banks. The firm anticipates that the momentum behind 2025’s double-digit earnings growth and superior stock performance will persist throughout 2026.

On December 18, Truist also raised the firm’s price target on Bank of America Corporation (NYSE:BAC) to $58 from $56 and keeps a Buy rating on the shares. This sentiment was posted as Truist broadly updated the firm’s financial model following recent management conference appearances. The firm raised the FY27 EPS estimate to reflect stronger revenue growth driven by higher fees, though these gains are partially tempered by projected increases in expenses and tax rates.

However, Morgan Stanley cut its price target for Bank of America from $70 to $68 on December 12 while maintaining an Overweight rating. This adjustment accompanied a downward revision of earnings expectations, specifically cutting the Q4 EPS estimate by 4% and the 2027 forecast by 2.5%. These changes are driven by an anticipation of softer investment banking fees and increased operating expenses, though the impact is partially mitigated by a stronger outlook for equities trading revenue.

Bank of America Corporation (NYSE:BAC), through its subsidiaries, provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide.

While we acknowledge the potential of BAC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BAC and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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