In the second quarter, Bank of America (BAC, Financial) reported a revenue of $26.5 billion, slightly below the expected $26.77 billion. The tangible book value per share stood at $27.71, while the Common Equity Tier 1 (CET1) capital ratio reached 11.5%. Net charge-offs for the quarter were recorded at 0.55%.
Under the leadership of Chair and CEO Brian Moynihan, the bank experienced a seven percent increase in earnings per share compared to the previous year. Net interest income saw continuous growth for the fourth consecutive quarter, driven by eight consecutive quarters of rising deposits and a seven percent increase in loans year-over-year. Consumer spending and asset quality remained robust, and utilization rates among commercial borrowers improved. Furthermore, the bank's market operations gained momentum. In the year's first half, Bank of America allocated more capital to its operations and returned 40 percent more capital to shareholders compared to the same period last year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Bank of America Corp (BAC, Financial) is $50.96 with a high estimate of $59.00 and a low estimate of $33.90. The average target implies an upside of 10.42% from the current price of $46.15. More detailed estimate data can be found on the Bank of America Corp (BAC) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Bank of America Corp's (BAC, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Bank of America Corp (BAC, Financial) in one year is $43.97, suggesting a downside of 4.72% from the current price of $46.15. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Bank of America Corp (BAC) Summary page.
