Bank of America stock price target maintained at $54 by TD Cowen

Investing.com - TD Cowen has reiterated its Buy rating on Bank of America (NYSE:BAC) with a price target of $54.00, citing a favorable earnings outlook for the financial institution. Currently trading at $50.08, near its 52-week high of $50.92, the banking giant commands a market capitalization of $370 billion. InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value model.

The research firm highlighted Bank of America’s positive setup, which it believes is building on the strength of net interest income (NII) and potential fee upside.

TD Cowen noted that Bank of America’s CFO Alastair Borthwick provided a "consistent to favorable update on near-term earnings" during a recent investor conference, reinforcing the firm’s bullish stance on the stock.

The bank is scheduled to hold its first Investor Day in 15 years next quarter, which TD Cowen views as an opportunity for management to address the company’s relative valuation gap.

The firm’s maintained Buy rating reflects its confidence in Bank of America’s continued earnings potential and the possibility of improved valuation following the upcoming Investor Day presentation.

In other recent news, Bank of America has maintained its Outperform rating with a price target of $57.00, as stated by Keefe, Bruyette & Woods. This decision followed remarks by Bank of America’s CFO regarding macroeconomic conditions and financial performance expectations. Additionally, Freedom Broker has raised its price target for Bank of America to $56.50, citing sector tailwinds as a significant factor.

In a separate development, Summit Ridge Energy has secured $305 million in financing from Bank of America for solar projects in Illinois and Maryland. This financing package, which includes a $281 million term loan and a $24 million letter of credit facility, aims to support 158 megawatts of solar capacity. Bank of America played a crucial role in this transaction, serving as Structuring Agent, Syndication Agent, and more.

Moreover, Bank of America is among the owners of Early Warning Services, LLC, which is facing a lawsuit from the New York Attorney General over alleged fraud on the Zelle platform. The lawsuit claims that the platform’s design lacked critical safety features, resulting in over $1 billion in losses. Lastly, Bank of America analysts see potential for the British pound and Australian dollar to appreciate, as hedge funds have been reducing their short positions.

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