Bank of America Corporation (NYSE:BAC) is included among the 15 Best Passive Income Stocks to Buy Right Now.
Image by Alexsander-777 from Pixabay
On November 7, Morgan Stanley kept its Overweight rating and a $70 price target on Bank of America Corporation, according to a report by The Fly. The firm also placed the bank among its top picks in the large-cap banking group following the company’s investor day. In its research note, the analyst mentioned that management laid out a path towards a 16% to 18% return on tangible common equity, supported by steady revenue growth and plans to bring the expense ratio down to a range of 55% to 59%. The firm also pointed out that it sees the bank entering a stretch of consistent operating leverage, which it believes should help Bank of America outperform its peers.
During the investor day on November 5, Chairman and CEO Brian Moynihan highlighted that he expected earnings to grow at a strong pace, with returns rising accordingly. In the Global Corporate & Investment Banking segment, the bank aims to lift corporate banking revenue at a mid-single-digit compound rate. Part of that growth is expected to come from its overseas expansion, where the company is targeting roughly 20% growth in Latin America and around 40% in Europe, the Middle East, and Africa. The Global Investment Banking unit is working with similar mid-single-digit growth expectations.
Bank of America Corporation has spent the past decade expanding its presence across the US. From 2014 through 2024, it put more than $5 billion into building out financial centers and moving into new markets nationwide.
Bank of America Corporation ranks among the largest financial institutions in the country, offering a broad range of banking, investment, and financial management services to individuals, small firms, and corporations around the world.
READ NEXT: 15 Extreme Dividend Stocks to Buy According to Hedge Funds and 15 Overlooked Dividend Stocks to Buy Right Now.
