Bank of America Corporation (NYSE:BAC) is included among the 15 Best Passive Income Stocks to Buy Right Now.
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On November 7, Morgan Stanley kept its Overweight rating and a $70 price target on Bank of America Corporation (NYSE:BAC), 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 (NYSE:BAC) 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 (NYSE:BAC) 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.
While we acknowledge the potential of BAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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