Bank of America Gets Downgraded Ahead of Earnings: What You Need to Know
Bank of America's stock is now at fair value, UBS says. Here's what you need to know.


Global financial services firm UBS downgraded Bank of America (BAC) stock to Neutral (the equivalent of Hold) from Buy this week because it thinks the bank stock has limited upside over the next 12 months. Still, analysts raised their price target on BAC to $40 from $39.
Bank of America has shown "strong deposit growth, a reawakened investment banking and markets business and the prospect for accelerated buybacks," UBS said in its report, but this is "now fairly reflected in market multiples" with the stock in the high-$30s.
"While we continue to view BAC as a high quality stock and a beneficiary from higher interest rates, the stock currently trades at 12 times our 2025 earnings per share estimate, which is in-line with our target multiple and above the company's 11 times 10-year average,” UBS said.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"As the market has shifted its stance towards expectations for a more gradual easing of interest rates (now expecting three cuts vs six in January), we think BAC's favorable asset sensitivity relative to peers has been reflected in the stock's performance and is now fully priced in," the analysts added.
The new price target of $40 by UBS implies an upside of about 8% from BAC's current stock price.
Bank of America is one of the world’s largest banks and the second-largest in the U.S. with total assets of more than $3 trillion and deposits of nearly $2 trillion.
CFRA is positive on bank earnings
CFRA Research analyst Kenneth Leon released a report ahead of first-quarter earnings for global U.S. banks, saying that they are "likely to see a sequential improvement in March versus December results, but year-over-year comparisons are likely to be flat to lower."
Leon notes that higher interest rates have benefitted net interest income of global U.S. banks and a "healthy U.S. economy" has been positive for loan volume growth.
The analyst concluded that JPMorgan Chase (JPM), Goldman Sachs (GS) and Morgan Stanley (MS) have the best chances to deliver better-than-expected results in the first quarter of 2024, but he's also positive on Citigroup (C) and Bank of America.
Q1 earnings season unofficially kicks off next Friday, April 12, with several big banks including JPMorgan reporting. Bank of America, meanwhile, hits the earnings calendar ahead of the April 16 open.
Analysts, on average, expect Bank of America to disclose first-quarter earnings of 71 cents per share, down 24.5% year-over-year. Revenue is forecast to fall 11% to $23.5 billion.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
4 Career Moves to Make Now if You're Worried About a Recession
Worried about a recession? These steps to protect your job prospects will help you professionally whether a downturn develops or not.
-
How StoryCorps Works and How You Can Tell Your Story
StoryCorps has recorded conversations between thousands of people, and anyone can participate. National facilitator Alan Jinich explains how to share your story.
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You Want
True retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.
-
Tactical Roth Conversions: Why 2025-2028 Is a Critical Window for Retirees
The One Big Beautiful Bill (OBBB) extended today's low tax brackets, but they may not last. Here's how smart planning now can prevent costly tax surprises later.
-
Ready to Retire? It's Not Too Late to Convert to a Roth IRA
Millions of Americans are turning 65 this year. If you're retiring soon, don't dismiss the idea of a Roth conversion — it could still be a smart move even now.
-
9 Warren Buffett Quotes for Investors to Live By
Warren Buffett transformed Berkshire Hathaway from a struggling textile firm to a sprawling conglomerate and investment vehicle. Here's how he did it.
-
I'm a Financial Adviser: Three Things You Will Wish You Did Before the Fed Cuts Interest Rates
With potential interest rate cuts on the horizon, you might want to lock in today's higher yields and consider adjusting your asset allocation.
-
Simple Ways to Save on Back-to-School Shopping This Year
Set a budget and stick to it, scour the house for what you already have, decorate backpacks and lunch boxes with your kids and consider buying some items during holiday sales.
-
Stocks End Strong Month on a Down Note: Stock Market Today
There was likely a bit of profit-taking ahead of a historically weak September.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have Today
UNH stock was a massive market beater for ages – until it wasn't.