Keefe Bruyette upgrades Bank of America on expected NII inflection - InvestingChannel

Keefe Bruyette upgrades Bank of America on expected NII inflection

Keefe Bruyette upgraded Bank of America to Outperform from Market Perform with a price target of $46, up from $37. Bank of America offers “strong: capital, deposits and credit, but the main driver of the upgrade is an expected inflection in the bank’s Q4 net interest income 5% above Q2, driven by back book repricing and improved commercial and industrial yields, the analyst tells investors in a research note. Moreover, the firm expects 4% NII growth in 2025 despite expectations of four interest rate cuts. Keefe believe Bank of America’s “closing the gap” to its 15% return on tangible common equity target and that consensus estimates have room to rise, which will drive share outperformance.

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