US stock futures dip as Nvidia earnings spark little cheer
Investing.com - Freedom Broker raised its price target on Bank of America (NYSE:BAC) to $56.50 from $47.00 on Wednesday, while maintaining a Buy rating on the stock. The banking giant, currently trading at $50.38, is approaching its 52-week high of $50.26, with InvestingPro analysis suggesting the stock remains undervalued.
The investment firm cited sector tailwinds as a key factor supporting its higher valuation, which is based on a forward price-to-earnings ratio of 12.5x and forward earnings per share of $4.50 for the period spanning third quarter 2026 through second quarter 2027. With a current P/E ratio of 14.61x and an impressive track record of raising dividends for 11 consecutive years, Bank of America offers a dividend yield of 2.23%.
Freedom Broker noted that Bank of America reported neutral results for the second quarter of 2025, with net revenue coming in slightly below expectations while earnings per share moderately exceeded forecasts.
The earnings outperformance was supported by tax benefits, according to the research note from Freedom Broker.
Bank of America management reaffirmed its fourth-quarter 2025 net interest income guidance, which Freedom Broker indicated was in line with market expectations. The $373.38 billion market cap bank has maintained stable financial metrics, with analysts projecting continued profitability for the year ahead.
In other recent news, the New York Attorney General filed a lawsuit against Early Warning Services, LLC, the operator of the payment platform Zelle, for allegedly failing to protect users from fraud. The lawsuit claims that this failure resulted in over $1 billion in losses between 2017 and 2023. Early Warning Services is owned by major U.S. banks, including JPMorgan Chase, Bank of America, Capital One, and Wells Fargo. In another development, Bank of America analysts see potential for the appreciation of the British pound and Australian dollar, noting cautious positioning among investors. Additionally, Bank of America has adjusted its outlook on the Japanese yen, citing recent U.S. labor data and political developments in Japan as influencing factors. On the political front, the White House is preparing an executive order targeting banks for allegedly discriminating against customers based on political affiliations, with President Donald Trump claiming discrimination against himself and his supporters. Bank of America CEO Brian Moynihan also weighed in on regulatory issues, discussing the impact of banking rules on the market and expressing agreement with President Trump’s concerns about debanking practices.
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