Bank of America stock price target raised to $59.50 by Freedom Capital

Investing.com - Freedom Capital Markets raised its price target on Bank of America (NYSE:BAC) to $59.50 from $56.50 on Friday, while maintaining a Buy rating on the stock following the bank’s third-quarter results. Currently trading at $52.52, near its 52-week high of $52.88, the $385.23B banking giant appears slightly undervalued according to InvestingPro Fair Value analysis.

The bank reported revenue of $28.1 billion for Q3 2025, in line with market expectations, while earnings per share came in at $1.06, exceeding the forecast of $1.04. Trading at a P/E ratio of 14.4x, the stock has attracted positive attention from analysts, with 11 recently revising their earnings estimates upward. InvestingPro analysis reveals 12 additional key insights about BAC’s financial health and market position.

Bank of America’s revenue growth outpaced expense growth during the quarter, improving its efficiency ratio to 62%, with the performance largely driven by non-interest income, particularly in investment banking, where fee revenue increased 43% year-over-year.

Credit quality metrics also showed improvement, with lower net charge-offs and stabilizing delinquency rates across the bank’s loan portfolio.

Management provided a positive outlook, projecting net interest income growth in Q4 and throughout full year 2026, with Freedom Capital’s new price target based on a 12.5x price-to-earnings multiple and forward EPS of $4.75.

In other recent news, Bank of America announced its Board of Directors has declared a regular quarterly cash dividend of $0.28 per share on its common stock, payable on December 26, 2025. Additionally, the bank declared a quarterly cash dividend of $1.75 per share on its 7% Cumulative Redeemable Preferred Stock, Series B, to be paid on January 23, 2026. The Board also authorized regular cash dividends on several series of the bank’s preferred stock, with payments scheduled throughout November and December 2025. In a strategic leadership change, Andy Noll has been appointed as the president of Bank of America’s Columbus market, succeeding Kelly D’Ambrosia. Keefe, Bruyette & Woods raised its price target for Bank of America stock to $58.00, citing strong third-quarter performance and maintaining an Outperform rating. The investment firm highlighted the bank’s 15.4% return on tangible common equity, supported by robust investment banking, trading, net interest income, and credit metrics. Furthermore, Bank of America filed a legal opinion with the SEC related to its medium-term notes offerings, indicating ongoing financial activities.

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