Bank of America (BAC) PT Raised to $40 at BMO Capital

BMO Capital analyst James Fotheringham raised the price target on Bank of America (NYSE: BAC) to $40.00 (from $38.00) while maintaining a Market Perform rating.

The analyst commented, "Following BAC's 2Q24 capital markets-driven revenues beat, we raise our forward estimates by as much as +2%; higher than previously modeled non-interest income (capital markets revenues) and higher share repurchases (estimated in 2H24) more than offset higher expected operating and tax expenses. Investors took relief from BAC's detailed guidance for NII to increase in 3Q24 and again in 4Q24, following 2Q24’s trough (relative to the current rate cycle). Our new $40 target price (was $38) is predicated on 1.3x two-year-forward TCE (product of 13% estimated RoTCE and 10x target P/E)."

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