European Carmakers' Trade-Off: European car manufacturers are facing a potential easing of CO₂ emissions regulations while also contending with increased competition from China, which could impact their market performance in 2026.
Ferrari's Market Position: Ferrari is highlighted as a key investment opportunity, with expectations of a cautious approach as it prepares to launch its first electric vehicle, while also potentially increasing its guidance for future growth.
Impact of Regulatory Changes: The European Commission's plans to roll back restrictions on internal combustion engine vehicles could positively affect carmakers in the EU, where electric vehicle demand is currently lower than in the U.S. and China.
Valuation Insights: Automotive stocks, particularly those like Volkswagen and Renault, are trading at low price-to-earnings ratios, suggesting they are undervalued, and easing CO₂ regulations could lead to a re-rating of these stocks, improving long-term growth expectations.
Wall Street analysts forecast BAC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BAC is 61.17 USD with a low forecast of 55.00 USD and a high forecast of 71.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
Wall Street analysts forecast BAC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for BAC is 61.17 USD with a low forecast of 55.00 USD and a high forecast of 71.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 52.450
Low
55.00
Averages
61.17
High
71.00
Current: 52.450
Low
55.00
Averages
61.17
High
71.00
HSBC
Saul Martinez
Hold
to
Buy
upgrade
$50
2026-01-07
Reason
HSBC
Saul Martinez
Price Target
$50
AI Analysis
2026-01-07
upgrade
Hold
to
Buy
Reason
HSBC analyst Saul Martinez upgraded Bank of America (BAC) to Buy from Hold with a $50 price target. The recent pullback provides an opportunity to add exposure to what the analyst calls "a market leader with an attractive earnings and profitability outlook" at an attractive valuation. Bank of America trades at "a historically wide" discount on next 12 months consensus earnings to JPMorgan (JPM), the analyst added.
TD Cowen
Buy
maintain
$64 -> $66
2026-01-07
Reason
TD Cowen
Price Target
$64 -> $66
2026-01-07
maintain
Buy
Reason
TD Cowen raised the firm's price target on Bank of America to $66 from $64 and keeps a Buy rating on the shares. The firm adjusted bank targets as part of a Q4 earnings preview. TD expects "solid" Q4 reports for the banks with continued balance sheet growth, repricing tailwinds, and a "likely more dovish" Federal Reserve chair in 2026. These "durable tailwinds" should lift bank stocks in 2026, the analyst tells investors in a research note.
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Wolfe Research
Steven Chubak
Outperform -> Peer Perform
downgrade
2026-01-07
Reason
Wolfe Research
Steven Chubak
Price Target
2026-01-07
downgrade
Outperform -> Peer Perform
Reason
Wolfe Research analyst Steven Chubak downgraded Bank of America to Peer Perform from Outperform.
Wolfe Research
Outperform -> Peer Perform
downgrade
2026-01-07
Reason
Wolfe Research
Price Target
2026-01-07
downgrade
Outperform -> Peer Perform
Reason
As previously reported, Wolfe Research downgraded JPMorgan (JPM), Bank of America (BAC), U.S. Bancorp (USB) and M&T Bank (MTB), all to Peer Perform from Outperform, with no price targets as part of the firm's Top 10 Themes for 2026 note on the Banks, Brokers, and Alternative Managers. Most buy-siders expect the Money Centers group to continue to outperform in 2026, but the firm's take is "less sanguine" after the Money Center group rallied 40% in 2025, the analyst tells investors. For JPMorgan, the analyst sees modest upside to numbers, but a valuation that is "full." For BofA, the firm says its downgrade is "tougher on valuation," but it sees risk to forward estimates as net interest income tailwinds are fully baked and expenses should "surprise negatively." For the other two banks the downgrades reflect limited catalysts for multiple re-rating above long term average multiples, the analyst tells investors.
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
