Bank of America (NYSE:BAC) closed at a record $59.90 on Monday, up 1.99%, after touching an intraday high of $59.95. The milestone came as the stock resumed trading following the July 3 Independence Day holiday, with the rally bringing the share price closer to the average analyst target.
According to data from MarketScreener, the mean price target from 24 analysts now stands at $64.74, implying approximately 8.08% upside from the last close. This gap has narrowed significantly after several major Wall Street firms raised their targets, though the stock's recent outperformance means the potential upside is less generous than it was a few weeks ago.
Analyst Target Updates
Evercore ISI increased its target to $63 from $61, representing 5.2% upside from the current price. JPMorgan raised its target to $62.50 from $57.50, offering 4.3% upside. Wells Fargo bumped its target to $67 from $65, implying 11.9% upside, while Goldman Sachs lifted its target to $71 from $65, representing 18.5% upside. These revisions, tracked by MarketScreener and StockAnalysis via TheFly, reflect growing confidence in the bank's earnings trajectory.
Earnings Outlook
Analyst estimates for the second quarter have edged higher. The current EPS forecast for Q2 2026 stands at $1.11, up from $1.10 last month and $1.08 three months ago. Full-year 2026 EPS is now expected at $4.48, rising from $4.34 three months ago, a 3.2% increase. The upward revisions are modest but consistent, with the Q3 2026 EPS estimate at $1.14 and the 2027 forecast at $5.10.
The stock's rally has outpaced earnings growth, meaning that without a significant beat on July 14, the current price targets offer less support for new buyers. The bull case hinges partly on markets revenue, as Bank of America Co-President Jim DeMare noted last month that equity markets are driving most activity and that corporate clients are not canceling any notable projects.
Market Context
Bank of America outperformed JPMorgan Chase (NYSE:JPM), which rose 0.99%, and the Financial Select Sector SPDR Fund (NYSEARCA:XLF), which gained 0.94%. However, it lagged behind Citigroup (NYSE:C), up 2.79%, and Wells Fargo (NYSE:WFC), which added 2.28%. The Invesco KBW Bank ETF (NASDAQ:KBWB) rose 1.90%.
CEO Brian Moynihan recently commented on the interest rate environment, telling Fox Business that inflation will persist and rates will remain higher as a result of a strong economy. This backdrop supports net interest income for large banks like Bank of America.
The bank reported first-quarter revenue of $30.3 billion, net income of $8.6 billion, and diluted EPS of $1.11, with a return on tangible common equity of 16.0%. These results set a high bar for the upcoming Q2 report, scheduled for release around 6:45 a.m. ET on July 14, followed by an investor call at 8:30 a.m. ET.
