Bank of America (BAC) PT Raised to $35 at Goldman Sachs, 'Much better operating trends than feared'

Goldman Sachs analyst Richard Ramsden raised the price target on Bank of America (NYSE: BAC) to $35.00 (from $33.00) while maintaining a Buy rating.

The analyst5 comments "BAC reported 2Q23 EPS of 88¢ vs GSe/Visible Alpha consensus 83¢/84¢, with core EPS of 95¢ above our/Street estimates of 87¢/89¢[1]. We remain constructive on BAC post results and reiterate our Buy rating, given: 1) NII came in line much better than feared, with the company guiding to flattish NII in 3Q23, and only a slight 1-2% decline to $14.0bn in 4Q23, which is ~$800mn higher on an annualized basis than Street expectations; 2) relatively broad-based and stronger fee trends, across both capital markets and consumer fees; and 3) strong efficiency in the quarter, and only a slightly higher expense guide for 2H23. Factoring in the results and the management commentary, we increase 2024E EPS by 1%. Based on our forecasts, we see BAC generating a 2023 ROTCE of 14.9% and 13.8% in 2024. We increase our 2024E P/E target multiple to 10.0x , resulting in a 12-month price target of $35 (was $33)."

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