Keefe Bruyette downgrades 'vulnerable' Bank of America to Underperform - InvestingChannel

Keefe Bruyette downgrades ‘vulnerable’ Bank of America to Underperform

Keefe Bruyette analyst David Konrad downgraded Bank of America (BAC) to Underperform from Market Perform with a price target of $33, down from $35. KBW’s estimates are 12% below consensus for 2024 and the shares are trading above its historical price-to-earnings multiple, the analyst tells investors in a research note. The firm views Bank of America shares as “vulnerable” following the 7% post-earnings rally and sees limited catalysts with the bank hitting “peak” revenues and net interest income. Bank of America’s current premium valuation to JPMorgan (JPM) is expensive for an environment that may face more revenue risk than a severe credit downturn, writes KBW.

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