BAC Stock Forecast & Price Target

Bank of America reported a strong performance, with total core revenues reaching $28.1 billion, reflecting a year-over-year increase of 9.9% and exceeding expectations by $0.9 billion. The bank showcased significant improvement in its investment banking revenues, which surged by 41% quarter-over-quarter, and also experienced an improvement in non-performing assets (NPAs), decreasing by 10.4% quarter-over-quarter. Overall, the company's operating leverage trends indicate robust growth potential, driven by favorable credit conditions and a solid capital markets environment, placing it in a favorable position relative to its peers.

The analysis indicates that Bank of America faces multiple fundamental risks, including potential decreases in bank equity values and worse-than-expected asset quality performance, which could be exacerbated by a challenging macroeconomic environment. The company’s 3Q25 earnings per share (EPS) of $1.06 exceed earlier estimates, but concerns persist regarding the possibility of a severe recession leading to higher loan losses and further pressure on loan volumes and revenues. Additionally, ongoing challenges related to net interest margin (NIM) pressure and increased regulatory scrutiny contribute to a cautious outlook for the bank's financial stability and performance.