Bank of America stock rating reiterated at Buy by UBS on strong earnings

Investing.com - UBS maintained its Buy rating and $57.00 price target on Bank of America (NYSE:BAC) following the bank’s quarterly earnings report. The stock, currently trading near its 52-week high of $52.88, shows potential upside according to InvestingPro’s Fair Value analysis.

Bank of America reported earnings per share of $1.06, crossing what UBS analyst Erika Najarian called an important "psychological" market hurdle, as quarterly EPS had been "stuck under a buck" for some time. The bank, which commands a market capitalization of $380.91 billion, trades at a P/E ratio of 14.03.

The bank delivered a beat on net interest income (NII) in the third quarter and raised the lower end of its fourth-quarter NII guidance range while meeting consensus expectations for expenses.

UBS noted that critics might focus on certain aspects of the results, including a provision beat of 3 cents and a tax rate beat of 3 cents.

Despite these potential criticisms, UBS expects the combination of positive factors to drive strong stock performance, noting that the results should support continued share price momentum despite crowded long positioning heading into the earnings announcement.

In other recent news, Bank of America reported stronger-than-expected earnings for the third quarter of 2025. The bank’s earnings per share reached $1.06, surpassing the forecast of $0.95, while revenue also exceeded expectations, totaling $28.09 billion compared to the anticipated $27.48 billion. These results were described as a "textbook quarter" by TD Cowen. Following the earnings announcement, TD Cowen raised its price target for Bank of America from $59.00 to $61.00, maintaining a Buy rating. These developments highlight the bank’s robust financial performance and positive reception from analysts.

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