On Tuesday, Bank of America's (NYSE:BAC) price target was raised to $48.00 from $45.00 by a financial analyst at Argus, who also reaffirmed a Buy rating on the stock. The adjustment follows the bank's recent earnings report where it disclosed a per-share earnings of $0.83 for the second quarter of 2024. Although these earnings marked a decrease from the $0.88 reported in the same quarter the previous year, they surpassed the consensus estimate of $0.80.
The bank's net revenues saw a modest increase of 1%. In their financial outlook, management at Bank of America has expressed confidence in a revitalized lending business in the latter half of 2024. They forecast a rise in net interest income to $14.5 billion in the fourth quarter, up from $13.9 billion in the second quarter.
A notable surge in investment banking revenues, which jumped 29% in the second quarter, was a highlight of the report. The expectation is for this momentum to extend into the second half of the year, with an anticipated uptick in capital markets revenue across the industry.
Bank of America shareholders have experienced enhanced returns, particularly after the Comprehensive Capital Analysis and Review (CCAR) results in June 2024. Following the CCAR, the bank announced an 8% increase in its dividend, signaling a positive move for shareholder value.
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