Bank of America stock rating reiterated at Outperform by KBW

Published 09/09/2025, 14:34
Bank of America stock rating reiterated at Outperform by KBW

Investing.com - Keefe, Bruyette & Woods maintained its Outperform rating and $57.00 price target on Bank of America (NYSE:BAC) stock in a recent research note.

The research firm’s analyst Chris McGratty issued the rating following comments from Bank of America CFO Alastair Borthwick at a competitor’s conference, where the executive discussed macroeconomic conditions and financial performance expectations. The bank, trading at a P/E ratio of 14.35, has demonstrated strong shareholder returns with a current dividend yield of 2.26%.

KBW noted that Bank of America management provided insights on net interest income factors and third-quarter 2025 capital markets expectations during the presentation.

The firm highlighted that improved capital markets expectations for the third quarter of 2025 are expected to be largely offset by higher expense projections.

The research note specifically mentioned that "better 3Q25 capital markets expectations are largely offset by higher expense expectations," suggesting a balanced outlook for the bank’s near-term financial performance.

In other recent news, Summit Ridge Energy has secured a $305 million senior secured credit facility from Bank of America to finance community solar projects in Illinois and Maryland. This financing package includes a $281 million term loan and a $24 million letter of credit facility, supporting 158 megawatts of solar capacity. In another development, Freedom Broker has raised its price target on Bank of America stock to $56.50, up from $47.00, maintaining a Buy rating due to sector tailwinds. Meanwhile, the New York Attorney General has filed a lawsuit against Early Warning Services, LLC, the operator of Zelle, for allegedly failing to protect users from over $1 billion in fraud losses. Early Warning Services is owned by major banks including Bank of America. Additionally, Bank of America analysts see potential appreciation for the British pound and Australian dollar, although positioning remains cautious. The bank has also revised its outlook for the Japanese yen, citing U.S. labor data and Japanese political developments as influencing factors.

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