Bank Profits Soar as Wall Street Anticipates Widespread Earnings Growth

Written by Emily J. Thompson, Senior Investment Analyst

BAC+0.73%

JPM+0.53%

GOOGL+0.66%

Source: Barron's

Updated: 3d ago

0mins

Source: Barron's

Positive Outlook for Earnings: Wall Street anticipates a better-than-expected fourth-quarter earnings season, driven by optimistic forecasts from major banks.
Impact on Various Sectors: The encouraging bank outlooks suggest favorable results for upcoming reports in industrial, consumer, healthcare, and tech sectors.

BAC

$52.45+Infinity%1D

Analyst Views on BAC

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

14 Buy

4 Hold

0 Sell

Strong Buy

Current: 52.070

Low

55.00

Averages

61.17

High

71.00

Current: 52.070

Low

55.00

Averages

61.17

High

71.00

HSBC

Saul Martinez

Hold

Buy

upgrade

$50

2026-01-07

Reason

HSBC

Saul Martinez

Price Target

$50

AI Analysis

2026-01-07

upgrade

Hold

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.