Bank of America stock holds steady as Truist reiterates buy rating

Bank of America (NYSE:BAC), the $337 billion financial giant, maintained its net interest income guidance for 2025 during an industry conference presentation on Wednesday. CEO Brian Moynihan confirmed the bank still expects 6-7% year-over-year growth in 2025 with a fourth-quarter exit rate of $15.5-15.7 billion. According to InvestingPro analysis, the bank currently trades slightly above its Fair Value.

Truist Securities reiterated its buy rating and $51.00 price target on Bank of America following the presentation. The maintained net interest income guidance aligns with current consensus expectations among analysts. InvestingPro data shows analyst targets ranging from $42 to $57, with the company maintaining dividend payments for 55 consecutive years and offering a 2.31% yield.

Moynihan also provided new guidance for second-quarter trading revenues, projecting mid-to-high single-digit growth compared to the same period last year. This trading update is in line to slightly below current market expectations, depending on where the final figure lands within the guidance range.

The CEO further revealed that Bank of America expects second-quarter investment banking fees of approximately $1.2 billion. This projection falls below the consensus estimate of roughly $1.5 billion, representing a shortfall of approximately $300 million.

The presentation occurred amid ongoing investor interest in how major financial institutions are navigating the current interest rate environment and managing their various business segments across traditional banking, trading, and investment banking operations.

In other recent news, Bank of America announced plans to expand its operations by opening over 150 new financial centers by the end of 2027. This expansion includes a flagship center in New York City and an entry into the Boise, Idaho market. Additionally, Fitch Ratings has confirmed Bank of America’s ’AA-’ rating, citing the bank’s strong intrinsic profile and stable financial performance. The bank’s credit metrics have stabilized, with net charge-offs declining to 0.5% of loans in the first quarter of 2025. In a potential strategic move, Bank of America has been selected by ABB (ST:ABB) to assist in a possible deal involving its robotics unit. Furthermore, there are preliminary talks involving Bank of America and other major banks about issuing a joint stablecoin to counter cryptocurrency competition. Morgan Stanley (NYSE:MS) analysts have predicted an increase in bank mergers and acquisitions in the latter half of the year, which could influence Bank of America’s strategic decisions.

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