Jefferies Touts Bank of America Corporation (BAC) Interest Income Outlook

Bank of America Corporation (NYSE:BAC) is one of the best stocks to invest in for good returns. On March 25, Jefferies touted Bank of America Corporation (NYSE:BAC)’s net interest income outlook of 5% to 7% over the next five years, as the company benefits from fixed asset repricing.

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The research firm expects the investment bank to embark on disciplined expense growth, likely to drive durable operating leverage. In addition, it expects a strong consumer deposit base to be a positive differentiator, as the bank also boasts of a solid credit quality. Therefore, Bank of America’s return on tangible common equity is expected to improve to between 16% and 18% over the next two to three years, up from 14% in 2025.

Amid solid underlying fundamentals, Jefferies has initiated coverage of the Bank with a Buy rating and a $60 price target. The positive stance comes on the heels of the investment bank forming a new team focused on helping private equity firms exit their investments. Private Capital M&A Group is the new segment whose main goal is to help buyout firms monetize their portfolio companies.

Bank of America Corporation (NYSE:BAC) is a leading global financial institution serving roughly 70 million consumer and small-business clients through banking, investing, and asset management. It offers services including personal checking/loans, credit cards, mortgage, Merrill wealth management, and corporate/investment banking to corporations and institutions in over 35 countries.

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