Bank of America (BAC) PT Raised to $61 at Truist Securities

Truist Securities analyst John McDonald raised the price target on Bank of America (NYSE: BAC) to $61.00 (from $57.00) while maintaining a Buy rating.

The analyst commented: "We raise our EPS estimates by 2% for 2026 (excluding the 1Q overage) and 3% for 2027 due to higher revenues (both NII and fees), with a modest offset from higher expenses. We now incorporate 8% NII growth this year, at the high-end of BofA's new guidance range, as well as better assumed growth in trading, IB, and wealth management fees. Our model assumes that BofA generates 225bps of positive O/L this year and 200bps next year, producing a decline in its efficiency ratio to 60% in 2026 and 59% in 2027. Net net, we now estimate a 15.5% ROTCE in 2026, expanding to 16.4% in 2027, with an assumption that BofA maintains steady capital levels consistent with its current 11.2% CET-1 ratio. Our 2026E EPS increases to $4.45 (from $4.33) and our 2027E EPS increases to $5.10 (from $4.95). We increase our price target to $61 (+$4) based on a ~12x P/E applied to our new 2027 EPS estimate."

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