Bank of America (BAC) at an Inflection Point - Goldman Sachs
Get Alerts BAC Hot Sheet
Rating Summary:
19 Buy, 21 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Join SI Premium – FREE
Goldman Sachs analyst Richard Ramsden sees an inflection point for Bank of America (NYSE: BAC) and reiterated a Conviction Buy List rating and price target of $17 after hosting an investor meeting with BAC Chairman and CEO Brian Moynihan on Wednesday.
"We believe that BAC is on the cusp of an inflection in operating leverage as revenue growth and cost reductions appear set to occur concurrently," he said.
"Historically, cost cuts have largely been offset by revenue attrition. However, BAC is now lapping many of its legacy revenue headwinds (i.e. portfolio divestures, loan run offs and footprint rationalization) as recent investments in the consumer and corporate franchises are beginning to bear fruit," he added.
They continue to believe that a 10% ROTCE is achievable (even without higher interest rates), and, with the stock trading at a P/TBV of 0.9x, they see valuation as compelling.
For an analyst ratings summary and ratings history on Bank of America click here. For more ratings news on Bank of America click here.
Shares of Bank of America closed at $15.40 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Meta Platforms Inc. (META) PT Lowered to $500 at Goldman Sachs, 'Management Track Record of Execution Leaves Us Long-Term Constructive'
- Rubrik (RBRK) Prices Upsized 23.5M Share IPO at $32/sh
- Rubrik, Inc. (RBRK) IPO Opens at $38.60, Priced at $32
Create E-mail Alert Related Categories
Analyst Comments, Hot CommentsRelated Entities
Goldman Sachs Conviction Buy List, Goldman SachsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!