BAC
Still cheap, apparently
Bank of America’s valuation pitch is back in the spotlight, and the message is basically: don’t count this one out yet. The note slaps a Strong Buy on BAC and hangs a $78 price target on it, which implies about 26% upside from the recent $62 level.
That’s not exactly a “throw the whole bank into the bargain bin” argument. It’s more of a “the cash machine is working harder than the stock price suggests” take.
Why the bulls are squinting at the numbers
The case here leans on a few classic bank-quality ingredients:
- Rising net interest income as the spread business improves
- Stronger fee businesses doing their part instead of freeloading
- Operating leverage kicking in, which is finance-speak for making more without wildly bloating costs
- Aggressive share repurchases helping lift earnings per share like a quiet little cheat code
And the latest quarter gave the bulls some ammo. Q2 2026 showed revenue up 15% year over year, net income up 27%, and ROTCE at 17%. In other words, this isn’t a sleepy utility with a tie on — every major segment reportedly grew.
Big picture
For investors, the point is that Bank of America still looks like a bank with room to run if earnings keep compounding and buybacks keep shrinking the share count. If the growth story sticks, the multiple may have to play catch-up instead of sitting there pretending it’s too cool to move.