HSBC Upgrades Bank of America to Buy Rating

On Tuesday, analysts at HSBC upgraded Bank of America (NYSE:BAC) from a "hold" rating to a "buy" rating, indicating their confidence in the stock's potential. The brokerage set a price target of $50.00 for the financial services provider's stock. This new price objective represents a possible upside of 10.16% from the stock's last closing price.

This upgrade follows a trend of mixed ratings for Bank of America in recent weeks. For example, Oppenheimer reduced their price target for the bank from $57.00 to $54.00 while maintaining an "outperform" rating. In contrast, Piper Sandler raised their target from $44.00 to $50.00 but kept a "neutral" stance.

Truist Financial has recently initiated coverage of Bank of America with a "buy" rating and a price target of $52.00. Royal Bank of Canada also reaffirmed an "outperform" rating, setting a target price of $46.00. Citigroup similarly moved shares from a "neutral" rating to a "buy," increasing their target from $46.00 to $54.00.

Currently, there is a wide range of opinions on Bank of America from various analysts. While one research analyst has rated the stock as a sell, seven maintain a hold rating, and fifteen have given it a buy rating. One analyst has suggested a strong buy, leading to an overall average rating of "Moderate Buy" with an average price target of $47.50 according to data from MarketBeat.

Recent Stock Performance

Bank of America saw its stock price rise by 1.3% recently, opening at $45.39. It has shown volatility over the past year, with a 52-week range of $31.27 to $48.08. As of now, the company has a market capitalization of approximately $348.27 billion and a price-to-earnings (P/E) ratio of 16.51.

In its most recent earnings report, released on October 15th, Bank of America announced an earnings per share (EPS) of $0.81 for the quarter, surpassing the consensus expectation of $0.78. The bank reported revenue of $25.30 billion, which was slightly above analyst estimates of $25.25 billion, and a year-over-year revenue increase of 0.4%.

Insider Activity and Institutional Trading

There have also been insider transactions affecting the stock. For instance, Berkshire Hathaway sold about 4 million shares of Bank of America at an average price of $40.14, valuing the transaction at approximately $160.64 million. Following this sale, Berkshire still holds over 776 million shares of Bank of America.

Several hedge funds have recently adjusted their positions in Bank of America, indicating varied interest among institutional investors. For example, Fairway Wealth LLC bought a new stake in the second quarter, and Kennebec Savings Bank made a similar move in the third quarter.

About Bank of America

Bank of America Corporation offers a range of banking and financial services to individual consumers and businesses. It operates through four main segments: Consumer Banking, Global Wealth & Investment Management, Global Banking, and Global Markets.

HSBC, Upgrade, BankOfAmerica