Bank of America Corp (NYSE:BAC) stock is in for a great year and analysts think its stock price will surge to at least $30. Donald Trump has already started scrapping the Dodd-Frank act, which was imposed on financial institutions after the financial crisis of 2008. The new administration has promised to lax regulations and rules for banks in the country. The Federal Reserve is now expected to raise interest rates in March amid latest jobs data and economic growth. Federal Reserve chair Jennet Yellen recently said in a Senate hearing that a March rate hike was “on the table”. A rate hike will be a great news for Bank of America Corp (NYSE:BAC), which has a huge customer base in the country, and its mortgage securities are more rate-sensitive than those of its competitors like JPMorgan and Citigroup. Over the past six months, Bank of America Corp (NYSE:BAC) shares have gained over 63% in value.
In the fourth quarter of 2016, Bank of America Corp (NYSE:BAC) profits increased by 43% to $4.7 billion, or $0.40 a share, while analysts had expected the second largest bank in the country in terms of assets to earn $0.38 a share. The bank mainly benefited from increased trading activity. Its overall expenses saw a decline of 6% in the period. Revenue in the quarter increased by 2% to reach $20 billion, less than the Street’s forecast of $20.8 billion, but still bright enough to keep the investors optimistic. Bank of America Corp (NYSE:BAC) CEO Bank of America CEO Brian Moynihan’s strategy of cost cutting is now showing its fruit. Analysts are of the view that Bank of America shares are undervalued, having a price to earnings ratio of 11, while companies like JPMorgan has a ratio of 11.3 and Wells Fargo’s price to earnings ratio is 12.
Out of 34 top industry analysts covering Bank of America Corp (NYSE:BAC), 11 think have a Buy rating for the company’s stock, and 15 analysts think the Bank is set to outperform the market.
Advanced Real-Time Chart: If not automatically loaded with the correct symbol related to this article, you can manually enter it (ex. AAPL) to update the chart.